The industry’s argument against legislation has a simple logic: pay day loans provide quick cash for emergencies in a fashion that banking institutions or credit unions typically don’t.

The industry’s argument against legislation has a simple logic: pay day loans provide quick cash for emergencies in a fashion that banking institutions or credit unions typically don’t.

Certain, the apr (APR) is high, however the loan terms aren’t for the whole 12 months. The majority are two- or four-week loans of lower than $500. A $15 cost on every $100 lent, the industry contends, is tantamount up to a 15 % interest cost. Imposing a 36 percent APR limit would reduce those costs to a mere $1.36 per $100 loaned. “No one could loan cash at that price,” Bernie Harrington, president associated with the Montana Financial provider Center, warned their state legislature during 2009. Continue reading “The industry’s argument against legislation has a simple logic: pay day loans provide quick cash for emergencies in a fashion that banking institutions or credit unions typically don’t.”