The Center for Responsible Lending (CRL) calls it “Modern Day Usury: The Payday Loan Trap.”
I’m going to share with you some frightening stats regarding the payday loan industry so you can better understand why we at end payday loan debt are in this fight for you.
– In July 2009 it was reported the 76% of the volume of business for payday lenders came from people getting repeat payday loans.
– In 2010 over 3 million people got payday loans online and it is estimated that by 2016 that 60% of payday lending will be done online.
– In 2011 lending online line has nearly doubled the 2010 statistics.
– 87% of borrowers will get a new loan during their next pay period.
– First time loans only account for 2% of the volume of payday loans.
– 1/4 of all payday loan customers are on social assistance.
– The typical repayment amount for a $325 payday loan is $793.
– America has over 25,000 payday lenders
– The average APR (annual Percentage Rate on a payday loan exceeds 400%
– Payday loans extract between 25% – 50% of a borrowers income, so this leave them with nothing to handle everyday living expenses. So this forces borrowers into getting new loans to cover those costs and that’s what the lenders want. And this is the payday loan debt cycle (trap).
Here comes the even scarier part lenders are now operating off shore and they do it through shell companies. So this means they can circumvent state regulations.
So in reality it is an anything goes policy now, so forget about consumer protection so the scams are even easier.
I will keep saying this – these companies are crooks and sharks praying on people that have little to no options when a financial emergence occurs.
If a financial emergence occurs NEVER use these companies – sell something, borrow from a friend, get an advance from work – but NEVER use these services.
If you are currently caught in payday loan debt – please give us a call – we can end your payday loan nightmare TODAY!!
Cheers
Leo