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They are unfounded myths easily used by anti pay check lenders to make people deny themselves of an chance to find solution to their immediate financial need. Payday loan are meant for working class folks who need a lifeline before the next pay day. It is a 2 weeks short term loan, which cannot accumulate the high quoted APR of 391%.
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These statistics resemble generally in most other states. Which means the borrower pays $400 – $500 in loan fees on a $400 loan. This can be absurd usury and should be illegal because it is not helping anyone except the lender. It is predatory lending at better if just gets borrowers in deeper debt than before.”Some will say, that little man requires somewhere to go,” said state Rep. Eldridge Emory, “Butif he gets money this way, he’s just digging a dent deeper and deeper, and he is not going to get out.”Several states like New York have currently banned this form of predatory lending.
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