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.