The payday advance market victimstake advantage of the poorest working Americans, who take money advances and typically discover they can never ever captureovertake debts that keep spiraling higher. In much of the United States, payday loan providers reap big profits by charging triple-digit rate of interest and high costs, all the while sending borrowers into an inescapable cycle of debt.
In Massachusetts, stringent policies have actually kept payday loan providers primarily at arms length. The federal government will soon follow suitdo the same, with suggested rules and tighter financing standards released by the Customer Financial Security Bureau. Yet even if the brand-new rules get rid of the payday advance industry, they wont cure the basic issue: the absence of access to credit for the working poor.
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