Monday, April 21, 2014

We're No. 1: Idaho Tops Nation in Payday Loan Rates—582 Percent

Posted By on Mon, Apr 21, 2014 at 9:54 AM

A new study from the Pew Charitable Trusts indicates that Idaho has the highest payday loan interest rates in the nation.

The Salt Lake Tribune reports that Idaho payday lenders are charging an average 582 percent annual interest on their loans. No. 2 were South Dakota and Wisconsin at 574 percent, Nevada at 521 percent, Delaware at 517 percent and Utah at 474 percent.

Additionally, the Pew study also found that even where there were more payday loan stores, competition didn't pull down interest rates.

"This new research shows that payday loan markets are not competitive,'' Nick Bourke, project director for Pew, told The Tribune.

The Idaho Community Action Network says when Gem State residents borrow large amounts of money from payday lenders, it begins a vicious cycle.

"They go to social services, which are already very crowded," ICAN's Yuliana Nogales told Citydesk. "It's just like home loans that were given to people who can't afford it. They're given money; they know they can't pay it [back]."

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