Washington Post: ‘We’ve got ‘em on the run’: Texas cities work to rein in payday loans
July 14, 2014
In late 2012, Gail Rowland’s eyesight was dimming. She was in her late 60s, and knew she’d need a cataract surgery — but the insurance deductible was going to be $1,000. She’d lost most of her savings going through a divorce, and needed the rest for daily expenses, so the rest had to come from somewhere.
That’s when she noticed an ad in Greensheet, a listings site, for The Cash Store. She thought the ad said she could pay back the loan at her own pace, and so she didn’t think too much about walking into one of their 15 Houston locations, handing over pay stubs and her bank account information, putting down the names of five friends and relatives, and leaving with $1,455 in crisp bills.
The APR was 581.72 percent. And that’s some very expensive money: If she made all 10 payments as scheduled, it would have cost $2,831.54 on top of what she borrowed. Read more here.