Federal officials unveiled new restrictions on payday lenders Thursday that aim to help low-income borrowers avoid the debt traps" of readily available, high-interest loans that critics say prey on minority communities. Usually, this type of borrowing is what's called an unsecured loan , which means you aren't borrowing against something you already own such as a car. Should you not be able to pay a loan back, the items which you secured the loan against will not be repossessed as payment.Payday loans are a form of borrowing that lasts for a short period of time. You borrow a small amount of money at a high interest rate. When you borrow the money, you write a check detailing the amount you want to borrow as well as a fee. This check is dated in the future and is exchanged for the cash sum.
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