CA Payday Overview
David Lazarus Endorses A 36% Cap
Hear what David Lazarus, Business Columnist of the Los Angeles Times, thinks about high-interest payday loans and why a 36% interest cap is needed.
The California office collaborates with organizations from across the state in opposition to costly payday loans that trap Californians in a cycle of debt.
Payday loans are small, short-term loans secured by a borrower's personal check that carry interest rates of 459 percent APR for a typical two-week loan. Payday lenders argue that their loans are for emergency use and not for chronic budget shortfalls but not only do payday loans cause budget shortfalls, but data indicate that most California borrowers take out 10 loans per year.
This is the payday lending debt trap, and the only way to truly spring it is with a sensible 36 percent interest-rate cap, which fifteen states, the District of Columbia and the Department of Defense (for members of the military) have already done.
