12 million Americans take out payday loans to keep up with their cost of living
Today Radioactivity explores payday loans. Each year 12 million Americans take out a payday loan to quickly borrow money and keep up with a routine living expense - to pay rent, utility bills and other small routine obligations. In the 35 states that allow this type of lump-sum repayment loan, the typical customer has to repeatedly "re-borrow" the money every two weeks and spends five months of the year in debt.
Rob Lorei speaks with Nick Bourke, Director of Safe Small-dollar Loans Research Project at the Pew Charitable Trusts to discuss why millions of Americans choose payday loans each year and Pew's new report and recommendations for regulatory changes for the Consumer Financial Protection Bureau to protect consumers from these short-term loan practices.
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