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Put a Stop to Astronomical Interest Rates on Predatory Payday Loans

Payday lenders offer deceptive loans with triple-digit interest rates that are zapping the potential of poor and often minority communities. 

Capitalism is one thing. Exploitation is another.

Here's how it works: payday lenders offer loans of a few hundred dollars with a fee of $15 per $100 borrowed. Customers leave a postdated check. Often, though, when the loan comes due, they are not able to repay in full and end up taking out another $300 payday loan -- with another $45 fee. The average customer takes out somewhere between five and 10 payday loans in a year.

Many states have pending legislation that would cap interest rates for payday loans. Currently, interest rates on payday loans routinely reach into the triple and quadruple digits, including Missouri at 1,955 percent, Montana at 652 percent and California at 459 percent. A blanket regulation from the federal government would be both quicker and stronger. 

Payday lenders are a common sight in many poor communities. In fact, payday lending storefronts outnumber McDonald's restaurants in 29 of the 35 states that allow the practice.

Stop the bleeding. Tell your Congressional representatives to pass the Payday Loan Reform Act, or similar legislation, to curb the siphoning of money out of poor and minority communities via payday lending.

Photo credit: stallio

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    Josie Raymond started this petition with a single signature, and now has 237 supporters. Start a petition today to change something you care about.