DETROIT, MI - Using names like Check 'n Go, Cash Advance and Payday Loans, there are companies throughout Detroit and beyond that specialize in immediate, high-cost, shot-term loans with interest rates often reaching 30 percent or more.
Michigan United, an activist organization, is asking government officials to create rules limiting "payday lenders' ability to prey on vulnerable consumers" and plan a protest in Detroit Tuesday.
Protesters plan to dress in hazmat suits armed with caution tape to make their point.
"Michigan is one of 35 states across the country that authorizes payday lending in some form, " Michigan United said in a statement Monday. "While some states and cities have worked to put a stop to predatory lending, federal laws still largely allow payday lenders to prey on vulnerable communities and benefit from borrowers' financial hardship - with annual interest rates that routinely reach 400 percent or more."
Michigan United says the industry thrives on the poor, entraps them in a "cycle of debt." It did not outline in Monday's statement exactly what limits it would like to see imposed.
A Google search for of payday loan centers yields nearly 70 such businesses located in Detroit, some operating 24 hours a day. Their loans are accessible online with automatic bank deposits. In-person cash loans are available at on-site locations.
A Merchant Cash Advance is a lump sum payment to a business in exchange for an agreed upon percentage of future credit card and/or debit card sales. Merchant Cash Advance companies provide funds to businesses in exchange for a percentage of the businesses daily credit card income, directly from the processor that clears and settles the credit...
Collect on delivery (COD) is a financial transaction where the payment of products and/or services received is done at the time of actual delivery rather than paid-for in advance. The term is mainly applied to consumer products purchased from a third party, where payment is made to or collected by the deliverer from the recipient rather than...
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