SCRANTON TIMES-TRIBUEN Editorial: A state Senate committee last week narrowly approved the means to worsen the plight of poor workers in Pennsylvania. The full Legislature should not follow the Banking and Insurance Committee’s lead…
Borrowers give lenders access to their checking accounts to withdraw principal and interest due, but the reality is those borrowers very rarely are able to repay the loans on schedule. Most often, they become locked in a long cycle of escalating debt rather than benefit from the quick infusion of cash promised by lenders…
Early this year the Pew Charitable Trusts released the results of a two-year research project on the type of lending at issue. The report found that, because the average borrower can’t pay back a typical $375 loan within the prescribed two-week period, he ends up taking eight loans over five months that result in the $375 loan costing $520. That’s why more than 75 percent of payday loans are renewals rather than new loans… (more)
