Predatory Lenders Charging Up To 589% Interest Posted Record Profits In 2020 Thanks To “Stimulus”
“I can’t even think about how much money I just paid in interest,” 44 year old Jamie Johnson said, thinking back to a payday loan he took out in April 2020.
His $5,000 loan – which eventually accrued interest at a clip of up to 589% annualized – was the topic of a new Bloomberg article on payday and predatory lending.
“It was just a big mess,” Johnson said, telling Bloomberg he used pandemic-relief unemployment insurance checks of $965 each week to hurriedly help pay back the debt for fear of being trapped in a neverending cycle of compounding interest and fees.
It’s stories like his that are the driving force behind payday and other high interest loan companies “emerging from the pandemic stronger than perhaps ever before”. The lenders raked in record earnings while Americans suffered during the pandemic.
Tue, 05/18/2021 – 19:45
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