Idaho Web Directory

Learn to invest and build wealth
Title:	Learn to invest and build wealth
URL:	https://thinkingclearfinance.com/
Description:	A Payday Loan is a short term loan that typically will have a term of no more than a few weeks. They are taken out at a number of a thousand storefronts all across America or online. The loan interest rate will typically be as high as the state law allows. For instance, Texas will allow over 700% interest to be charged, whereas the American average is around 400%. If the person who takes the loan is unable to pay it off with interest when it comes due, they have the option or repaying just the interest and not paying anything to the principal. History of Payday Loans. The Payday Loan industry is a relatively new industry only dating back to the late 1970s. In the days before the Payday Loan industry, there were “loan sharks”. A “loan shark” would offer high-interest rate loans and use high-pressure collections techniques (think breaking knee caps). The Payday Loan industry eventually filled that void, but in a way that they could use mass advertisements and appear as a legitimate business. The Court Case That Created The Payday Loan Industry The case of Marquette Nat’l Bank v. First of Omaha Service Corp. et al., 439 U.S.299 (1978), played a huge role in giving the payday loan industry its first boost. It ruled that lenders could legally charge borrowers the interest rates of the state that the lender resides in and not the state that the borrower resides in. Naturally, Payday lenders flocked to states with the highest interest rates allowed. This is more responsible than any other single thing for the creation of the payday industry.

Learn to invest and build wealth