Banks Now Payday Lenders

Jan 20, 2012 by

In a previous Money Counselor post (Reverse Bank Robbery) I described the slimy features of payday lending and noted that mainstream banks are aiming to cash in on the lucrative business. Banks and those gaudy storefront payday lenders you may have noticed in lower income neighborhoods charge customers up to 400% interest on loans. What’s worse is that, once you’re on the very costly payday lending treadmill, jumping off can become nearly impossible.

Have you borrowed money from payday lenders, including now your bank? Are you struggling to pay off payday loans? If you’ve escaped from the high-interest payday lending trap, how did you do it?

Before you consider taking out a payday loan—from either your bank or a storefront lender—watch this 3-minute video from the Center for Responsible Lending:

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