WSJ News Exclusive | How Payday Lenders Target Consumers Hurt by Coronavirus

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In three months, Izetta Ferguson paid $1,100 toward her $1,500 loan. The balance? $1,457. How high-interest lenders are targeting consumers in need of cash during the coronavirus pandemic.

They sidestepped state crackdowns by joining with out-of-state banks to offer loans and now are bypassing ad bans put in place by Google, which calls their offerings “dangerous financial products,” and Facebook Inc.

, a Wall Street Journal investigation found.

Source: Loan Digest (loandigest.net)

 

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The higher the loan losses, the higher the interest rates needed to compensate for the risk. Otherwise availability of high risk loan would be gone. If ppl with poor credit can get loans from regular banks at regular rates, they’d get them already. It’s a tough situation.

I thought at first that the interest is criminally high but we don’t know the rate of bad loans. For poor ppl to get loans that someone is willing to offer, there must a trade off of risk and reward or the availability will disappear. We’ve seen only one side of the story.

Seems like Usury is in play or loan sharking of some kind. Ms. Ferguson will be paying forever on a small loan of 1500. How can that be allowed anywhere in America? Criminal to do that to someone, despicable.

The poor and needy have always been targeted by these lowlife scumbag lending companies. Just being made more visible during COVID- 19 pandemic

We need micro lending in US.

We're supposed to have usury laws in this country, but somehow the paycheck advance companies get away with it. Education is probably the solution, but it's up to leaders in minority communities to do it. Simply blaming the white man for everything is not going to fix it.

They are the worst business in our economy, yet politicians do nothing about it.

This happen in third world countries. Many people make money from someone else blood and tears.

Now there's a decent reason to riot.

SUCH METHOD OF INTEREST CALCULATION DEFINITELY HARM THE BORROWERS. ALL LENDERS, BANKS, FINANCIAL INSTITUTIONS NEEDS TO BE FAIR, TRANSPARENT TO BORROWERS. MANY BORROWERS MAY NOT KNOW WHY INTEREST, CHARGES LEVIED ARE VERY HIGH. REGULATORS TO PRESCRIBE CEILING ON INTEREST, CHARGES.

That's what the CFPB was designed to do, but you so-called Conservatives dismantled it.

This type of abuse is targeted toward the financially challenged. Terrible consequences for these consumers. High rates, high interest, bullied, asset confiscation and credit harm. No way these businesses should be allowed to hurt the public when intentions are honorable.

Usually NBFC rates are less but they charge in form of processing and financing fees.

Payday loans is one industry I have no respect for.

Are P2P loans a possible alternative to these loan sharks?

My PaydayLoan article attached 🇨🇦 view

Shameful.

Finally you understand

We need to help YouAreMyEqual

While I agree it is particularly shameful to do this at this time, it is their business model, 365 days a year, for years. And, as long as there is no one telling them they can't do it, it will continue

The people making loans at rates like that are no better than loan sharks and ought to be put out of business. Preying on poor people, what kind of human filth does that?

It happens also in India.

It’s called capitalism baby. Don’t like it? Don’t borrow.

They're like the Cosa Nostra; you borrow say, $1500, you end up having to pay back $5000, or more. Don't pay? They send their thugs to reign down turmoil on you. Just like the democrats also.

Welcome to the club. I paid over $2,000 on my $5K loan, I still owe $5K right now. I was desperate because my business slowed to a crawl last year, and kept slowing as we moved into 2020. I didn't have much choice otherwise.

The people making those loans are the ones that should be shot by the Police

If you want a story let me show you my studentloan statement...

These predators are horrible people. Taking advantage of people

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