Preying on Payday. Financial woes dogged Stewart Wilson through the summer time of 1996.

Preying on Payday. Financial woes dogged Stewart Wilson through the summer time of 1996.

Just how nationwide banks mare teaming up with storefront loan providers to benefit from high-interest loans towards the bad

Brendan I. Koerner

A naval officer that is petty Jacksonville, Florida, Wilson was at the midst of a pricey divorce proceedings along with his credit score had been abysmal. He required money, fast, but their only choice for a financial loan ended up being from a nearby check-cashing socket, where he had been expected to hand over a check, postdated to their next payday, for $250. As a swap, he received just $200; in annualized terms, interest from the loan ended up being an astounding 650 %.

Wilson visited one storefront after another, until he’d taken down near to $1,400 in pay day loans. To avoid their postdated checks from bouncing — their pay that is biweekly was $800 — Wilson quickly began borrowing from a single loan provider to repay another, each and every time ponying up excessive costs in order to remain afloat. Continue reading “Preying on Payday. Financial woes dogged Stewart Wilson through the summer time of 1996.”