WASHINGTON– As states from brand brand New Mexico to Illinois passed cash advance reform laws and regulations within the last couple of years, the motion to suppress customer-gouging short-term high-interest loans seemed to be gaining steam and growing teeth. Ohio and Arizona voters also took to your polls to accept price caps on payday loan providers, no matter threats that the industry would fold if it needed to reduce prices from because high as 400 per cent to 36 per cent or less.
However the industry didn’t fold. Payday loan providers in a few of the identical states that passed reforms continue making payday advances – and often at greater rates of interest than they did prior to the rules had been enacted, in accordance with policy that is public and customer advocates whom stick to the industry. Read more →