So what's the problem with payday loans? - Staunton News Leader(Cash Before Payday)
Activists say the problem with payday loans is that many people cannot afford to pay the loan in full, forcing them to roll the debt over and pay additional fees. To get a payday loan, an individual will pay about $15 for every $100 they borrow, said Hayhoe. Lyndsey Medsker, spokeswoman for Community Financial Services Association, the trade association of payday lenders, said 90 percent of borrowers pay off their loans when they are due. It is illegal for lenders to roll a payday loan into a new one, said Joe Face, commissioner of financial institutions at the Virginia Bureau of Financial Institutions, which regulates the loans. Learn more
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