1,000% loans? An incredible number of borrowers face crushing costs

1,000% loans? An incredible number of borrowers face crushing costs

Last xmas Eve, Virginia resident Patricia Mitchell borrowed $800 to simply help cope with the holiday season. Within 3 months, she owed her loan provider, Allied advance loan, $1,800.

A small lender in Laguna, New Mexico, reports that some customers come to him seeking help refinancing loans from nearby payday lenders that carry annual percentage rates of more than 1,000 percent on the other side of the country, Marvin Ginn, executive director of Native Community Finance.

“You will get someone with low earnings into that loan with this sort of interest also it’s like, ‘Holy mackerel!’ How can they ever get free from it?” he stated.

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