Problem solved
Sunday, May 18th, 2008 By Mike MaurerRemarkably, the General Assembly just put an industry out of business. (Payday lender to close up to 139 stores) It used to be that you could go get a short term loan of $200, $500, or some similar amount, but you had to pay pretty outrageous fees to do it, something like $15 per $100. For the math-impaired, that’d be paying $75 to borrow $500 for two weeks.
Pretty darned expensive stuff. Not something you’d want to do very often.
Unless you were about to bounce a series of checks. Assuming you’ve done that before, then each check would cost you something like $25 to $40. Basically, two checks bounced and your fee is the same. Four or five checks bounced, and you’re paying, not $75 for two weeks, but $200 for two days. And Huntington National Bank is considered the good guy in that scenario!
So guess which group our hero legislators attacked, the one charging poor people with poor math and planning skills $75 for two weeks, or $200 for two days? Hint: Payday lenders likely doomed.
