Pending Payday Lending Legislation: A Debt Trap for Military Veterans

Pending Payday Lending Legislation: A Debt Trap for Military Veterans

Community Legal Services Warns associated with Risk

Kerry Smith, Staff Attorney, Community Legal Services of Philadelphia, an advocate that is leading low earnings residents into the Philadelphia area, talked to your Council at its 20 March company conference as a part of the coalition of over 90 organizations – such as the Community Action Committee of Lehigh Valley, MOAA of Pennsylvania, the Navy Marine Corps Relief community, the Veterans Leadership Program of Western Pennsylvania; as well as the Council of Churches, AFL-CIO and AARP of Pennsylvania – who have issues concerning the current lobbying to permit payday lending in Pennsylvania, which can be presently unlawful.

They consider this style of lending a predatory training and Ms. Smith explained why: a $300 loan, as an example, is good for $42 in charges and interest together with requirement to electronically spend in the payday that is next in 2 months). The individual loses control of the distribution of his earnings as the lender gets paid first from the individual’s bank and he pays an exorbitant rate of interest (300% APR) without considering the fee in other words. Continue reading „Pending Payday Lending Legislation: A Debt Trap for Military Veterans“