what is payday loan

  • what is payday loan

    By 2008, writes Jonathan Zinman, an economist at Dartmouth, payday-loan stores nationwide outnumbered McDonald’s restaurants and Starbucks coffee shops combined

    By 2008, writes Jonathan Zinman, an economist at Dartmouth, payday-loan stores nationwide outnumbered McDonald’s restaurants and Starbucks coffee shops combined

    That maxim surely helped guide the deregulation of the fringe lending business in the 1990s-and some advocates still believe that further deregulation is the key to making payday loans affordable

    There’s no single reason payday lending in its more mainstream, visible form took off in the 1990s, but an essential enabler was deregulation. States began to roll back usury caps, and changes in federal laws helped lenders structure their loans so as to avoid the caps.

    Still, according to Pew, the number of states in which payday lenders operate has fallen from a peak of 44 in 2004 to 36 this year

    Now, however, the storefront-payday-lending industry is embattled.

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