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Why payday loan use is on the rise during the pandemic and how you can avoid it

Payday lenders targeting low-income people are nothing new. Short-term, high-interest loans which are often intended for minorities in rural areas, have the potential to create a spiral of debt from which many find it difficult to break free. In 2018, for example, more than 33,000 payday loans were taken out each week in Alabama, according […]

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Russia’s delinquent payday loan portfolio hits new record

The number of overdue payday loans in Russia hit a record 5.4 million in February, according to consumer credit rating agency Equifax. In total, Russians owe microfinance organizations 172 billion rubles ($ 2.2 billion) – very short-term loans that usually come with high interest rates and are designed to tide borrowers out for a few […]

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Illinois adopts strict payday loan limits as other states stagnate

Illinois has joined the growing number of states that have clamped down on high-cost payday loans, but it has taken a different route to get there: the state house. Illinois Governor JB Pritzker (D) signed legislation March 23 that caps interest rates on payday loans, auto title loans and installment loans at 36%. Similar efforts […]

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What happens when you can’t repay a payday loan?

A payday loan default can result in bank overdraft fees, collection calls, damage to your credit scores, a day in court, and garnishment of your paycheck. Don’t think it can’t happen because you only borrowed $300. “If you have a valid, binding legal agreement to pay that debt, and you’re in a state where they […]

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This Legislation Could End Illinois’ Payday Loan Industry | Chicago News

Kesha Warren needed a short-term cash injection of $1,250 to cover payroll costs for her small janitorial services business. In 2019, she took out an auto title loan, a short-term loan that uses the borrower’s vehicle as collateral. She says she has been cut off from more traditional bank loans. “Nobody wants to lend to […]