Payday Lenders Strip Florida Borrowers of $2.5 Billion in costs, Despite State Law

Contact: Joe Rendeiro jrendeiro@nclr.org 202-776-1566

MIAMI—Floridians have actually compensated a lot more than $2.5 billion in charges on high-cost pay day loans throughout the decade that is last relating to new research because of the middle for accountable Lending (CRL). Further, within the most recently reported one-year duration, June 2014 through May 2015, over $311 million in charges had been compensated on loans averaging almost $400. These along with other findings from a written report entitled Perfect Storm: Payday Lenders Harm Consumers Despite State Law refute online payday loans Alabama current claims that the state that is existing has protected customers when you look at the Sunshine State and really should be properly used as being a model for the country.

Today, CRL joined up with the nationwide Council of Los Angeles Raza (NCLR), Latino Leadership, Inc. as well as the Florida Alliance for Consumer Protection in a phone press briefing where specialists examined just exactly how Florida’s payday lending laws are not able to protect borrowers, enabling loan providers to a target communities of color.

“Our analysis demonstrates that what the law states did absolutely nothing to stop your debt trap,” said Brandon Coleman, co-author for the report and a CRL Policy Counsel. “With 83% of payday advances likely to individuals stuck in 7 or maybe more loans each year, it is easy to understand exactly just how Florida’s legislation is a deep a deep failing consumers.”