Who’s stopping them?
November 4, 2009 | Iowa, industry | Comments (0)From a letter in the Dubuque Herald Telegraph:
The average payday loan rate in Iowa is 430 percent annual percentage rate. The average payday loan term is two weeks.
One solution to the practices of these enterprises that gouge the poor, some of whom are unknowing victims, is for banks and credit unions to step forward and make available small loans ($250 to $1,500) at a reasonable rate of interest (12 percent?) payable in one to two years. Loan participants would be required to complete a mini budget-balancing course provided by NICC, the Community Foundation or one of the churches or other agency.
If the banks and credit unions want to make $250-$1500 loans, there is nothing stopping them. But we doubt consumers would be interested in being “required” to complete a course before they get a $250 loan.
Comments»
No comments yet.