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News : Cheap Payday Loans
Payday Loans
2 Jan , 2008
There's an advertisement on page A3 of the Daily News-Record Jan. 2 about payday loans that states "People who want to ban payday loans are trying to confuse and mislead you by talking about a yearly rate on a two-week loan. It's just a $15 fee."
It's not just a $15 fee, it's a $15 fee per $100 borrowed for a two week period, which is a simple annual interest rate of $390 percent. The Federal Truth in Lending Act of 1968 requires lenders to calculate the cost of credit as an annual percentage and disclose the APR in large bold type in loan application documents. The payday lenders are trying to use a simplistic message to hide their outrageous interest rates.
Source: http://www.dailynews-record.com/
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