Managing Money :: Bank Payday Loans… They’re Baaaaaaaack

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Date Recommended: July 10, 2009

Bank Payday Loans… They’re Baaaaaaaack

Payday lending is popular with consumers, especially those without bank accounts or access to credit. But the price of payday loans is very high.

In recent years, many states have reinstated interest rate caps to attack predatory lending, and many states limit the rates on small loans, including payday loans, typically above 17%-36%. However, the banking industry has entered the profitable business. Because many larger banks are federally chartered, they do not have to abide by state law to protect people from predatory loans.

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