There’s a common perception in the General Assembly these days that storefront consumer finance shops are not as bad a payday lenders. Indeed, this has been a common explanation offered by members of the Senate as they advanced legislation in recent weeks that will jack up the interest rates on consumer finance loans.
If this is true, however, the difference between the two predators is just a matter of degrees, not basic characteristics. If payday lenders are the great white shark of small loan predators, then finance companies are the tiger sharks. This truth is made clear in a new and powerful article from the muckrakers at the national news website, Pro Publica entitled “The 182 Percent Loan: How Installment Lenders Put Borrowers in a World of Hurt.” Read More