The payday lending industry might be entirely destroyed while the credit card industry would be significantly altered by a 15 percent rate cap.

The payday lending industry might be entirely destroyed while the credit card industry would be significantly altered by a 15 percent rate cap.

The program would ban pay day loans

“Payday” loans are basically short-term loans (the concept is you’re fronted a small amount of cash for per week or two until the next paycheck clears), which carry rates of interest that sound reasonable into the short-term context — 10 % over a couple of weeks, state, plus some charges. However in annualized terms, these loans carry a rate that is average of %, plus in some situations soar far more than that. Continue reading The payday lending industry might be entirely destroyed while the credit card industry would be significantly altered by a 15 percent rate cap.