Georgia considers loans that are payday dangerous to borrowers that they’re prohibited within state lines. U.S. armed forces officers testified before state lawmakers that the high interest, short-term paycheck improvements drown sailors and soldiers with debt. The U.S. Consumer Financial Protection Bureau, a federal consumer watchdog agency, planned a crackdown at one point.
Then when a Kennesaw State University research figured borrowers whom sign up for an extended sequence of payday loans fare a lot better than those who don’t, industry advocates tried it to battle down the prepared crackdown. (more…)