Simple Cash, Impossible Financial Obligation: Exactly Just Exactly How Predatory Lending Traps Alabama’s Bad

Simple Cash, Impossible Financial Obligation: Exactly Just Exactly How Predatory Lending Traps Alabama’s Bad

In this specific article

  • Executive Summary
  • Tricks associated with Trade
  • Victimized
  • Buyer Beware
  • Safeguards Needed
  • Just What Upcoming?
  • Acknowledgements
  • Letter to Richard Cordray

This report contains tales of people and families across Alabama that have dropped into this trap.

Executive Overview

Alabama has four times as many lenders that are payday McDonald’s restaurants. And possesses more name loan companies, per capita, than just about every other state.

This would come as no real surprise. Using the nation’s third highest poverty price and a shamefully lax regulatory environment, Alabama is just an utopia for predatory lenders. By advertising “easy cash” with no credit checks, they victimize low-income individuals and families in their period of best economic need – deliberately trapping them in a period of high-interest, unaffordable financial obligation and draining resources from impoverished communities.

Although these small-dollar loans are told lawmakers as short-term, crisis credit extended to borrowers until their next payday, this might be just the main tale.Continue reading