Overhaul in store for payday loan industry if bill passes
By Cole Epley / World-Herald Bureau 5 hrs ago
LINCOLN — Glenda Wood said she had no way of knowing the $500 postdated check she cut to get her hands on a payday loan in 2006 would take nearly a decade to get out from under.
First came the new set of tires. Then some unexpected home repairs. After that, medical bills — also unexpected.
On top of routine household expenses and student loan payments, Wood said the “payday loan trap” ensnared her and her family, and so the married mother of three took to the Nebraska Legislature’s Banking, Commerce and Insurance committee on Tuesday to support a proposal that would reduce the effective interest rate on such loans by an order of magnitude and stretch out the repayment period.
“We estimate we spent close to $10,000 paying back that original loan” for new tires, Wood said Tuesday, saying they took out small loan after small loan. “We felt exploited, trapped, powerless and unable to find a way out of the cycle.”PADemD, 7wo7rees, HeartoftheMidwest and 3 others4Sibes, Bearian, beemerphill like this"P.S. please if you get a chanse put some flowrs on Algernons grave in the bak yard.": Flowers for Algernon
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