A $2500 Payday Loan Turned into $50,000 in Fees
One man in Kansas City borrowed $2500 in payday loans when his wife fell ill and ended up paying $50,000 in fees and interest over a five-year period.
Here’s more on his story:
Clark took out five separate loans of $500 from payday loan companies in Kansas City. Each of those had $95 bi-weekly interest payments. He juggled the loans, paying them back just to take out another loan to pay off his bills and expenses. Over the course of five years, the initial $2,500 turned into $50,000!
Stories like Clark’s happen all over the country. Here in Tennessee, payday and car title lenders attack Tennessee borrowers for over $400 million a year.
For more on ways to fight payday lending loan sharks, follow @TNCitizenAction