TN Loan Sharks Charging 375%
Legalized loan sharks in Tennessee can charge up to 375% for a payday loan.
Sometimes, these ruthless “lenders” will even offer a “first loan free” program because they know that more than 70% of borrowers will borrow again.
The cycle of debt is what payday lenders depend on to keep their business growing. And it’s growing.
There are more payday loan shops in American than there are Starbucks and McDonald’s combined.
How can stop these sharks from preying on the working poor in Tennessee?
One Tennessee legislator has a modest proposal:
Cap rates on payday loans at 28%!
The payday lending sharks oppose this measure, advanced by State Represenative Darren Jernigan of Nashville.
The payday loan companies hire expensive lobbyists so they can avoid even the most reasonable regulation.
But: YOU CAN HELP!
Jernigan’s bill, HB 317, is up for a key committee vote tomorrow.
The House Insurance and Banking Subcommittee will hear the bill and decide whether it moves forward.
The meeting is at NOON tomorrow, March 25th.
Take a moment now and contact the committee members — tell them you support HB 317 and reasonable limits on payday lending.
And, if you want to know more about this issue and watch Rep. Jernigan go head-to-head with a lobbyist for the loan sharks, watch this!
Keep up with payday lending and other important consumer rights issues by following us @TNCitizenAction