Payday lending companies in Fresno prey on the poor. These companies lend a small amount of money at high interest rates on the agreement that the loan will be repaid when the borrower receives a paycheck.
However, the facts are that 66 percent of payday loan consumers are females who are already struggling financially and living paycheck to paycheck. Interest rates increase from 36 percent and up to 400 percent if consumers continue the re-loan process cycle. A typical payday loan consumer is in debt 216 days out of 365 days each year.
More than 60 payday lending locations are within Fresno’s city limits. These locations are strategically placed in impoverished neighborhoods to take advantage of desperate Fresno residents. Consumers who are unable to make full payments take on debts and fees that they cannot repay easily. Fresno has one of the highest poverty rates in the country. Fresno leaders should stick up for these impoverished residents.
Johanna Angel, Clovis