Regarding “Unbanked, but No Longer Ignored”, which appeared in the Washington Post on October 13th, the author Ylan Q. Mui writes about Mr. Anthony Jeffers, who borrowed $800 from a payday
lender, and repaid $1,100 two weeks later.
This amounts to a 37.5% fee on the principal.
I find this figure to be somewhat suspicious. For starters, I’m curious to know how
exactly he got this payday loan, considering payday lenders have been
banned in both North Carolina, where he resides, and in Washington
D.C., where he works.
I suppose he could have stopped in Virginia to
get his loan, but since Virginia only permits loans of up to $500 and
a 20% fee, that can’t be it, either.
Perhaps he took out a loan over the internet. Then again, the
maximum rates seen on the web are $30 per hundred.
Answers forthcoming from either the author or the Post? I won’t hold my breath.