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Payday Lenders Ripoff $103 Billion a Year in Poor Communities

Payday Lenders Ripoff $103 Billion a Year in Poor Communities

The $103 Billion a Year Payday Lending Ripoff. By Freddie Allen (NNPA) – Predatory lenders continue to target poor, Black and Latino communities, siphoning off $103 billion in fees and interests every year, and the rest of us are paying for it, according to a recent report by United for a Fair Economy.

10-yel“This is more money lost in poor communities than the United States spends on domestic food aid annually,” the report said. “We as a society end up subsidizing that lost income (an average of $3,029 per affected household) through a social safety net that is already underfunded and overcapacity.”

RELATED: Billionaire Mogul Bob Johnson Meets with CBC on Ending Payday Lending 

In “State of the Dream 2015: Underbanked and Overcharged,” United for a Fair Economy (UFE), an independent research group that advocates for economic equality across race, gender and class lines, chronicled the disparities that continue to plague the banking industry.  Read entire article