Wait a min, Lawmakers are really contemplating payday loans without term Limits in the future!
As the headline suggests, lawmakers in the state of Michigan I have proposed a bill allowing companies that extend payday loans to offer longer-term, higher interest loans that put the people who can least afford it in deeper debt.This is happening in Michigan at the same time States including Montana Colorado and Georgia have either banned payday loans or enacted strict caps on annual interest rates.
The News-Herald went on to say…….
Sandra Pearson who is the President of Habitat for Humanity in Michigan has spread the word about payday loans to many people and has said “most people have no idea what they’re getting into when they take out one of these loans”. In addition, Pearson went on to say that statistics show that 70% of Michigan payday loan borrowers will take out a new loan on the same day they pay off their old one. Most of the time these new loans are taken out at the same place that the old ones were paid off, creating a constant cycle of interest for the lender. In addition, Pierson pointed out that a person who took out a $2,500 loan will end up paying more than $7,000 back to the loan company after two years. In 2021 it’s hard to conceptualize that house bill number 5097 which has obviously been written specifically with the benefit of the payday loan lender in mind could ever pass the governing agencies and become law. But, we shall see.