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Let me make it clear about Set restrictions to 36% for pay day loans

Let me make it clear about Set restrictions to 36% for pay day loans

Set limitations to 36% for payday advances

Within the last few 5 years pay day loan organizations have drained $322 million from the Indiana economy in charges and high interest levels, making huge earnings from the backs for the bad, mostly affecting those within our towns and predominantly individuals of color, because of the Indiana legislature, which in 2002 carved an unique deal for payday loan providers away from our unlawful loansharking regulations.

These loans can be purchased as “a means to fix a short-term economic need.” In fact these are generally a trap that catches the typical debtor in a round of eight to 10 loans, borrowing and re-borrowing to escape the ever-growing debt due to astronomical rates of interest and fees—now capped at 391%. It is not a “free-market” problem. That is usury of our many susceptible residents.

To safeguard the projected $60 million in earnings made right here, these organizations submit high-powered lobbyists whenever their company techniques are challenged. Continue reading

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