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Posts tagged as “payday loans”

As Ky. Payday Lenders See Business Dropping, Industry Seeks Forgiveable Loans

As members of Congress push for allowing payday lenders to access federal loans, data show that their business in Kentucky dropped precipitously when the pandemic struck.

The industry processed about 20% fewer loans in March than it did the previous March, according to a monthly report provided to the Kentucky Department of Financial Institutions by the loan processing firm Veritec Solutions. That represents a drop in lending of $8.3 million in the short-term, typically high-interest loans.

The database shows loan volume ranged from 129,000 in March 2019 to as high as 168,000 loans the following August. But only 104,000 loans were processed this March, the lowest by far in the last year. 

More than 282,000 Kentuckians filed for unemployment insurance in March.

Payday, or deferred deposit, loan products offer small-dollar loans to borrowers, typically those with poor credit or without access to a traditional bank account. Data show the average payday loan in the last year in Kentucky was $348. Borrowers usually need to pay back the amount borrowed, plus interest and loan fees, within two weeks time. 

Critics of the industry say the loans are designed to trap borrowers into a cycle of debt, and research from the Consumer

Trump Wants To Limit Aid For Low-Income Americans. A Look At His Proposals

If you’re poor or low-income in the U.S. and take advantage of government safety net programs, you could be affected by a number of new rules and actions proposed by the Trump administration. Most of the changes are still pending, and anti-poverty groups are trying to stop them from going into effect. Some of the proposals already face legal challenges.

President Trump has said repeatedly that he wants to get more people off government aid and into the workforce so they can become self-sufficient. To help do that, he issued an executive order last year to reduce poverty “by promoting opportunity and economic mobility.”

In it, Trump called on federal agencies to streamline existing welfare programs, strengthen work requirements and make sure that taxpayer money is spent on “those who are truly in need.”

But anti-poverty advocates say the administration’s proposals would hurt, rather than help, poor Americans. They say it will make it more difficult for those trying to become self-sufficient by denying them food, housing and medical assistance when they need it most.

“They really are trying to use every agency to make life harder for people who are low-income,” says Elizabeth Lower-Basch, director of income and work …