A new report by the Louisiana Budget Project exposes the predatory lending industry.
Payday lenders promise predominantly poor and working-class clients quick cash with minimum documentation requirements. However, this “easy money” comes at a high financial cost to the borrowers and can lead to a downward financial spiral ending in personal bankruptcy.
Louisiana’s predatory payday lenders provide credit to desperate borrowers at annual interest rates that can exceed 600 percent. With the second highest poverty rate in the country, Louisiana provides an attractive market for payday lenders to exploit.
According to the report, Louisiana has one of the highest concentrations of payday lenders in the country, with one outlet for every 4,800 people—more than four times as many payday lenders as McDonald’s restaurants.
The Louisiana Budget Project urges lawmakers to put an end to blatant usury by requiring improved tracking and reporting and by strengthening regulation of the payday lending industry.
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For more detailed maps or information contact Tim Mathis, policy analyst at 225.929.5266 ex. 225 or e-mail firstname.lastname@example.org.