Black and Latino communities targeted by 700% APR payday loans
Payday lenders target minority communities with 700% APR loans, making $8.1B.
Why it matters
- High-interest loans trap borrowers in debt cycles.
- Black and Latino communities disproportionately targeted.
- 700% APR highlights predatory lending.
By the numbers
- APRs as high as 700%.
- Over $8.1B lended; $2.4B made in 2022 from 20M loans.
The big picture
- Targeted communities often lack traditional banking access.
- High-interest rates can perpetuate debt cycles.
What they're saying
- Political interference noted in payday lending reforms.
- Critics call 700% APR "legal robbery".
- Questions raised about borrower alternatives.
Caveats
- Study date unclear (2025 cited, likely typo).
- 2022 data may not reflect current trends.
What’s next
- Potential reforms to limit APRs or expand banking access.