Study finds payday loan fees take money from health care

[Omaha Steve]

http://www.omaha.com/index.php?u_page=1208&u_sid=10542051

Published Monday January 19, 2009
Study finds payday loan fees take money from health care
BY JOE RUFF
WORLD-HERALD STAFF WRITER

A study of payday loans in the Omaha area concluded that more than $19 million in excessive fees were not spent in other ways last year, with the health-care industry bearing the brunt of the lost dollars.

People paying high loan fees tend to reduce their health-related spending, according to the study, which was funded by the Sherwood Foundation and released this morning by the Financial Stability Partnership, a coalition of groups that helps people with low to moderate incomes.

There are about 107 payday loan locations in Douglas and Sarpy Counties, the study showed. That equates to about one store per 2,300 households, compared to the national average of one store per 3,500 households , according to the study

In one effort to protect borrowers, Nebraska has set a fee limit for payday loans of $15 per $100 advanced, which could equate to a 460 percent annual interest rate, depending on the length of the loan term, the study said.


FULL story at link.

[Crunchy Frog]

1. One group of parasites taking it away from another group of parasites.