…is the concerning headline of a story last month from the website The Street. The story opens with the tale of one employee and her loan:
Payday loans come in small amounts, but the $300 loan cost her $355. Based on the payday loan calculator at the Missouri Division of Finance Website, the fees equaled a 425% annual percentage rate (APR). Whitfield was lucky; rather than take back-to-back loans and end up paying thousands of dollars on the few hundred she borrowed, she only renewed her loan once. Borrowers typically find that they're broke as soon as they pay it off–and have to borrow again.
Read the full story here.