Understanding the loan peddlers
The names are varied and interesting but at the end of the day, all these payday loan stores are similar in one aspect — they try to squeeze you dry of your last dollar. According to national consumer group ACORN, a vast majority of these stores are placed in minority communities, preying on the poor and elderly and dragging low-income wage earners and people who rely on monthly government assistance into deeper debt cycles. Businessreport.com reports:
Beth Butler, an ACORN community organizer in Louisiana, says she recently attended a meeting of the group’s national officials, and payday lending was a hot topic. She says ACORN has supported legislation at the local, state and national levels with the goal of limiting the growth of what she calls "predatory lenders." "They fight us tooth and nail," Butler says. "Some of these payday lenders are owned by major banks. So the big financial institutions are lined up against us."
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