Idaho ranks 50th in the U.S. for its payday lending practices: That’s not ok with us!
What is a payday loan?
Payday lenders provide short-term loans with high interest rates and cater to lower income borrowers. A borrower writes a personal check to the payday lender who then holds the check for 14 to 31 days. At the end of this period, the check is deposited, the borrower either returns with cash to repay the loan, or the loan gets renewed and the borrower pays more fees. A typical loan costs $17.65 to borrow $100 for two weeks, or 459% Annual Percentage Rate (APR).
The Idaho Community Action Network and Idaho Main Street Alliance believe that payday lending operations produce a net economic loss for the local economy and create a cycle of debt. Payday lenders siphon dollars out of local economies and require oversight. Just look at these convincing facts and figures for Idaho:
- Number of payday lending stores: 232
- Annual payday loans per store: 3,643
- Average payday loan size: $350
- Maximum APR of two-week $100 payday loan: NO LIMIT
- Total payday loan volume: $295.8 million
- Total payday loan volume from churning: $224.8 million
- Total payday lending fees paid annually: $64.2 million
WANT TO SHARE YOUR STORY? Are you fed up with payday lenders who prey on vulnerable people? Have you been burned by a payday lender? The Idaho Main Street Alliance is building a campaign to regulate payday lenders in Idaho and we need your story. Email email@example.com with your story.