Many households facing financial struggles may look to short term loans in order to cover emergency expenses. In some states, payday lending companies that claim to provide needed support charge interest rates of 300% or more to borrowers. Steep interest rates and hidden fees can often surprise and trap those not able to quickly repay loans. This leads too many families into a “debt trap” that requires them to continue to take out more payday loans just to keep their regular bills paid. Right now, the Consumer Financial Protection Bureau (CFPB) has the power to curb this predatory debt trap.
( How to act )