Yet, another “alternative”
May 24, 2009 | Washington, alternatives, industry | Comments (0)I wish reporters were more clear about the terms of these so-called payday loan “alternatives.” From a story out of Seattle:
Its short-term loans have 15 percent interest rates, but 5 percent of that goes into the client’s savings account upon repayment. The loans can be paid off in 90 days, rather than the two weeks required by many payday-loan stores. Payday loans, by contrast, have interest rates as high as 390 percent.
If it’s a 90 day loan and has monthly payments (not clear) than it’s an installment loan, not a payday loan alternative.
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