An article at ResponsibleLending.org comments on a new report issued by
the Department of Defense finding that payday loan companies are taking
advantage of military personnel.
These companies generally prey on more than just military personnel. I
often have people come into my office and tell me they took out a $300
loan that will result in $350 being taken out of a paycheck in 2 weeks.
That’s over 400% interest. One other thing that bothers me is that
the payday loan people often tell my clients “you can’t file
bankruptcy on a payday loan.” This is completely false. First, payday
loans are not exempt from the bankrputcy process. Second, the whole idea
of filing bankruptcy “on” a debt is one of the
bankruptcy myths. You have to list ALL of your debts in a bankruptcy.