Latinos, Blacks and seniors targeted for high expense loans

Tuesday, January 5, 2021

Latinos, Blacks and seniors targeted for high expense loans

Payday Lenders Strip Florida Borrowers of $2.5 Billion in charges, Despite State Law

Contact: Joe Rendeiro jrendeiro@nclr.org 202-776-1566

MIAMI—Floridians have actually compensated significantly more than $2.5 billion in costs on high-cost pay day loans on the decade that is last relating to new research by the middle for accountable Lending (CRL). Further, within the most recently reported period that is one-year June 2014 through May 2015, over $311 million in charges ended up being compensated on loans averaging almost $400. These along with other findings from a written report entitled Perfect Storm: Payday Lenders Harm people Despite State Law refute present claims that an existing state legislation has protected customers into the Sunshine State and may be utilized as being a model for the country.

Today, CRL joined up with the nationwide Council of Los Angeles Raza (NCLR), Latino Leadership, Inc. plus the Florida Alliance for customer Protection in a phone press briefing where specialists examined exactly exactly how Florida’s lending that is payday are not able to protect borrowers, permitting loan providers to a target communities of color.

“Our analysis demonstrates that what the law states did absolutely nothing to stop your debt trap,” said Brandon Coleman, co-author of this report and a CRL Policy Counsel. “With 83% of pay day loans likely to individuals stuck in 7 or even more loans each year, it is easy to understand just exactly just how Florida’s legislation is failing customers.”

The persistent pattern of perform financing in Florida happens inspite of the 2001-enacted Deferred Presentment Act, a situation law that limits borrowers to simply one loan at any given time and carries a 24-hour delay duration between loans. Passed away with bipartisan help when you look at the legislature along with this for the payday industry, today payday lenders in Florida are far more commonplace than Starbucks’ 642 cafe areas and cost on typical 278% apr (APR). Read the rest of this entry »