Listed here are some fast details about the lending that is payday in Louisiana, compiled by LBP analyst David Gray.
- Relating to industry representatives, payday financing was designed to trap borrowers in long-lasting rounds of debt:
“The concept in the industry is that you’ve got to have that customer in, work to make him into a customer that is repetitive long-lasting consumer, because that is really where in actuality the profitability is. ” – Dan Freeman, CEO of money America
“In a situation with a $15 per $100 price, an operator… will be needing a brand new consumer to take out 4 to 5 loans before that client becomes lucrative. ” – Stephens Inc.
- A Louisiana that is typical borrower have to take 9 payday loans every year to settle their initial financial obligation, leading to $270 in charges for the one-time $100 loan. Continue reading “Fast Information About Payday Lending. PAYDAY LENDING RESULTS IN LONG-TERM DEBT TRAP”