Payday Loans: Modern Day Usury
by Stephen Lendman
Loan sharking writ large.
Payday loans let predatory lenders rip off unwary borrowers. They provide short-term unsecured quick cash. It comes at a high price. It matches the worst of loan shark practices.
The Center for Responsible Lending (CRL) calls itself a "non-partisan organization that works to protect homeownership and family wealth by fighting predatory lending practices."
It's "witnessed, studied, and fought against outrageous lending abuses." They "strip billions of dollars from (unwary) American families."
In July 2009, its report discussed predatory payday lending. It's titled " Phantom Demand : Short-term due date generates need for repeat payday loans, accounting for 76% of total volume."
In other words, debt entrapment assures repeat business. Borrowers need new loans to service old ones. They also need help to meet other obligations.