by Mark Price, Third and State, 6/11/13
Last week, the Senate Banking and Insurance Committee in a narrow vote approved Senate Bill 975, opening the door to thousands of predatory payday lenders to come to Pennsylvania and charge fees on short-term loans that equal an annual interest rate of over 300% on a typical two-week payday loan.
In April, the Consumer Financial Protection Bureau (CFPB), the federal agency charged with reining in the abusive financial practices, released a white paper that examines payday lending. Based on data collected from payday lenders in 33 states, the paper provides a very basic picture of the key characteristics of the people using these products. As Figure 1 below illustrates, the CFPB found that the overwhelming majority (84%) of borrowers have incomes of less than $40,000.
continue reading and download CFPB white paper at Third and State