Pentagon Targets Payday Lenders
SAN DIEGO (AP) -- With a family to feed and no money for groceries, Navy Yeoman 2nd Class Damon LaForce recently did something the military is trying to crack down on: He went to one of the many payday-lending businesses near his base for an instant loan.
Essentially, he borrowed against his next paycheck: After showing his military ID and a proof of address, LaForce wrote the lender a postdated check for $300. Five minutes later, the sailor walked out with $255 cash in his pocket.
''It was easy,'' LaForce said.
The $45 charge for his two-week loan would amount to an annual interest rate of a staggering 459 percent.
Read the rest at the NY Times
Essentially, he borrowed against his next paycheck: After showing his military ID and a proof of address, LaForce wrote the lender a postdated check for $300. Five minutes later, the sailor walked out with $255 cash in his pocket.
''It was easy,'' LaForce said.
The $45 charge for his two-week loan would amount to an annual interest rate of a staggering 459 percent.
Read the rest at the NY Times
posted by iraqnam at 1:24 PM
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