Stricter federal laws needed seriously to rein in unscrupulous payday lenders

Stricter federal laws needed seriously to rein in unscrupulous payday lenders

Maine has strong protections for customers, however some loan providers circumvent the principles.

Christmas are over, together with the conventional telecasts of Charles Dickens’ “A xmas Carol.” It really is never clarified what Ebenezer Scrooge’s company ended up being. The ghost of Jacob Marley, Scrooge’s dead partner, relates to it as a “counting house.” I usually assumed these were century that is 19th sharks. Because the vacation bills come due when you look at the brand New 12 months, it really is prompt to take a better glance at an specially avaricious twenty-first century version of Scrooge and Marley: “payday loan providers.”

Payday loan providers are organizations which make little, short-term, quick unsecured loans (often referred to as cash advances) with repayment at crazy interest levels (some up to 400 % or even more) that always come due within a couple weeks after receipt regarding the loan. While states like Maine have actually very long upheld strong defenses, some customers fall victim to businesses that fall outside of state jurisdiction. (más…)

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