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This report contains tales of people and families across Alabama who possess dropped into this trap.
Alabama has four times as numerous payday loan providers as McDonald’s restaurants. And possesses more name loan companies, per capita, than just about other state.
This would come as not surprising. Using the nation’s third poverty rate that is highest and a shamefully lax regulatory environment, Alabama is really an utopia for predatory lenders. By marketing “easy cash” and no credit checks, they victimize low-income people and families in their time of greatest economic need – deliberately trapping them in a period of high-interest, unaffordable debt and draining resources from impoverished communities.
This is only part of the story although these small-dollar loans are explained to lawmakers as short-term, emergency credit extended to borrowers until their next payday. Continue reading Simple Cash, Impossible Financial Obligation: Exactly How Predatory Lending Traps Alabama’s Bad