Payday Lending: How Does Legal Sharking Look Like in 2016?

The financial world has its own sharks that operate perfectly within the confines of law. However, they wouldn’t be sharks if there weren’t negatively affected parties—in particular, customers. Payday lenders are one of those parts of the financial services industry that have been unintentionally (or intentionally) legally sharking the ones with no other choice than alternative sources of financing rather than banks.

Payday loans are usually given at rates around 15%. Unfortunately, it’s not the only expense involved and they tend to add up to quite a big sum—a 15% rate (or a $15 fee) on a two-week $100 loan results in 390% APR. The $15 example is a democratic one ...

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