Payday loans are short-term, high-interest loans that trap unsuspecting consumers in a cycle of mounting debt. A person who borrows $300 to repair a car so they can get to work shouldn't be faced with thousands of dollars of debt.
While some states have banned or severely curtailed these predatory practices, others, including Mississippi, have too few payday lending regulations. This causes some individuals to pay as much as 572% interest over the life of the loan.
Payday loans destroy families, businesses and communities. A loan to cover a small expense should not be the first step down a road to financial ruin.
Tell Secretary Geithner to protect the economic security of American families by supporting payday lending reform and working to introduce policies that would ease interest rates and lengthen repayment periods.
Dear Secretary Geithner,
In these challenging times, many people need a little help getting by until the next paycheck. When someone needs a small dollar loan to cover an emergency expense or to keep afloat during difficult economic times, that loan should not start them down the road to financial ruin.
But the payday loan industry relies on a business model that keeps unsuspecting customers indebted to them, payday after payday.
While some states have banned or severely curtailed these predatory practices, others, including Mississippi, have too few payday lending regulations. This causes some individuals to pay as much as 572% interest over the life of the loan.
This dangerous industry must be reformed, especially as more and more people are turning to desperate measures to make ends meet. At a minimum, interest rates should be capped and the repayment periods should be made longer.
Furthermore, these companies must be held to the highest standards of responsibility. Now is not the time for even more Americans to be falling into unsustainable debt.
Please do everything in your power to reform payday lending.
Thank you.
