Payday loan providers have been around for 20 years or so, and in that time their growth rate has been exponential for one reason alone: The services they provide are a huge, undeniable, legal scam. Watch John Oliver and comedian Sarah Silverman explain why you need to avoid them at all costs.
Investigative reporter Greg Palast is usually pretty good at peering behind the rhetoric and seeing what is really going on. But in tearing into Sen. Elizabeth Warren’s support of postal financial services, he has done a serious disservice to the underdogs -- both the underbanked and the U.S. Postal Service itself.
Sen. Elizabeth Warren endorsed a proposal by the United States Postal Service's inspector general over the weekend that could prevent the poor from having to shell out billions of dollars in fees and maybe even save the post office from sinking.
In 2008, payday lenders suffered a major defeat when the Ohio legislature banned high-cost loans. That same year, they lost again when they dumped more than $20 million into an effort to roll back the law: The public voted against it by nearly two-to-one. But five years later, hundreds of payday loan stores still operate in Ohio, charging annual rates that can approach 700 percent.
Meet the major banks' newest partner: payday lenders, the owners of those check cashing stores that offer short-term loans with interest rates that sometimes exceed 500 percent.