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Federal Rules Could Tame Crazy Western of Payday Lending

Federal Rules Could Tame Crazy Western of Payday Lending

Leonard Abbott of San Marcos had heard about the hazards of pay day loans — the small-dollar, high-interest credit that may quickly trap borrowers in a morass of debt.

Leonard Abbott of San Marcos had been aware of the risks of pay day loans — the small-dollar, high-interest credit that will quickly trap borrowers in a morass of financial obligation. Nevertheless when unanticipated medical bills blew a gap in the month-to-month spending plan a year ago, he felt he’d nowhere else to make. He took down a $500 loan, hoping to repay it in complete in 2 days. As he couldn’t, he desired more loans, until about a 3rd of their $1,700 month-to-month take-home pay ended up being going toward repaying interest and charges alone.

“The 2nd loan that i acquired would be to assist spend the very first one, also it type of simply snowballed,” said Abbott, a 53-year-old Department of Public Safety security officer during the state Capitol.