Policy & Advocacy
Backgounder on Payday Lending 2015
Background on Payday Lending 2015
Predatory Banking and Payday Lending
Taking advantage of the financial distress of vulnerable people and communities has a long history. Unscrupulous and exploitative banking has existed from the usury condemned in the Bible to the redlining of minority and poor neighborhoods the ‘60s and ‘70s. Today, payday lending is only the most recent example of this long and reprehensible tradition.
Stagnating wages, underemployment, and rising costs of living have combined to create heavy financial stress for many Americans, especially those living in and near poverty. Families desperate for additional funds to make ends meet are ripe for exploitation by unscrupulous lenders who use a worker’s paycheck as collateral for short-term, high-interest loans.