Just say no
September 8, 2009 | Wisconsin, industry | Comments (0)CFSA’s Tommy Moore has a letter today in a local Wisconsin newspaper:
An annual interest rate cap of 36 percent would eliminate an affordable credit choice for consumers. At a 36 percent APR, the total fee charged on a $100, two-week advance would be $1.38. Payday advance lenders could not cover the cost of originating a loan, let alone meet employee payroll and benefits and other fixed business expenses.
Under our best practices, any customer who cannot repay their loan when due has the option of entering into an extended payment plan, allowing them to repay the loan over a period of additional weeks. This option is provided to customers for any reason and at no additional cost.
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