Payday Loans – Despite Credit Card Reforms, Expensive Payday Loans, ‘Subprime’ Cards Still Remain


A sweeping credit card law that takes effect Monday was supposed to prevent banks from employing tactics that yanked borrowers deeper into debt. Yet an array of loans and cards with crushing terms still beckons from every corner.

Consider a subprime credit card that now comes with a 59.9 percent interest rate. There are also payday loans and prepaid cards, both of which can come at steep costs.

The lenders serving risky borrowers say high fees and interest rates are necessary because their customers are more likely to default on loans. Restrictions on what they charge could put them out of business, and leave the neediest with no options at all, they say.

source here.

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