Video Wars: What's the Real Deal on Payday Loan APRs?
The payday lending chain Check N Go made the first video below trying to squirm around the fact that they charge 390% interest on their loans. The second video is a response from the Center for Responsible Lending.
The CRL video doesn’t have the cool whiteboard effects the Check N Go video does, but that’s probably because CRL isn’t flush with money made by ripping people off. Payday loans cost consumers over $4.2 billion in predatory fees each year, so I guess Check N Go can afford to make a nice video.
Production quality aside, see what you think of the merits of each.
Here’s our previous post about H.R. 1214, the Payday Lender Protection Act (technically called the Payday Loan Reform Act), which would give Congressional blessing to 391% APRs.