Not work? No, no problem. The typical unemployed Californian to receive the weekly earnings of $ 300, you can also go out in the $ 255 government check to arrive before walking to one of the hundreds of store operations throughout the state - for the cost $ 45. Annualized, it is the rate of 459%.
Critics of the practice has grown as an increase in the unemployment rate, it appears to be severe, these expensive loans and says it is sending the unemployment cycle of debt.
Many clients pay day, and pay off their loans and take another right away, borrowed from the lender to pay the first or second, and sink deeper in debt than ever before. Typical customers are some estimates, such a take out loans of 10 times per year.
Lenders are "products in the market to give the illusion of assistance," Ginna Green, spokeswoman for the advocacy group Center for Responsible Lending said. "But instead they throw the life jacket they are throwing concrete blocks."
Industry, and win a conventional bank to provide short-term loans to people who are not, sees it as a service.
Clear is that, regardless of cost, the unemployment rate hit 12. See Also loan payday lender .4 percent in California in December, with unemployed workers in need of quick cash is that payday lenders are turning to .
Edoreiesu, Los Angeles resident lost his job in retail stores about six months ago, said it had to take a payday loan three times since he is unemployed. Government check on his progress, he said, the late fee has helped pay for his home before he accumulated. See Also loans in chicago il .
"To be honest, they would give me something I did not, they did it," he stood outside the unemployment benefits office in downtown Los Angeles, said.
Ignacio Rodriguez, Ace Cash Express lenders pay clerk Van Nuys, he is about a quarter of a borrower's first look at using their unemployment checks as proof of income now.
"They just need extra money, and we called it," he said about the instant loan.
It is legal. Payday loans, which are regulated by the state, lenders are required to check there is no source of income. See Also loans in las vegas, nv . Borrowers must have a bank account and a valid ID to get a loan.
In California, nearly 1.4 million residents are unemployed, according to latest figures, from a pool of some 2.3 million people are unemployed out, are receiving unemployment benefits. Normal weekly earnings from $ 450 up to $ 40 range at the end of 26 weeks. However, signed into law an extension of the federal government during the economic downturn has increased the maximum length of nearly two years for some workers.
Periodic checks rolling in, the unemployed can be a reliable borrower's payday lenders. By law, lenders may charge a fee of $ 100 to borrow $ 15. Just about the size of the average unemployment casual Golden State - California, the largest loan is $ 300. Check out also loans for no .
Borrowers, lenders, and loan fees that can be cashed in about two weeks later, leaving a postdated check to cover.
In California, the maximum allowable interest rate on these loans is 459%. See Also loanfinder log in . APRS in other states are even higher: 870 percent and 782 percent of Maine's most Wyoming. Rate has been accused by critics. But Stephen Shrine, a spokesman for the financial services group bias application payday lender trade community. From the United States, saying you do not understand the reality of scraping by critics, advocates and provides loans to unemployed. Check out also loan for low credit .
"Who are they to decide?" Said cache line. "We have billions of dollars of credit issued. Clich and pat their back problems.
"These people must have money. They tell them to go to relatives, have the bill paid by these people. There is a need to go to a job interview but these people. Need to trust it you. "
Shrine, said a small portion of customers who are unemployed in the industry. Check out also loan2payday in hour . Nevertheless, it is good business.
The advantage of making a payday loan where the borrower receives a relatively high unemployment benefits, especially in California, he said, other than making loans is not necessarily high risk. The loan default rate by a handful of public companies in the industry range from about 2.5% to 5%, Shrine said.
State licensing payday lenders in 2385 to regulate the company's lenders, according to the latest report was in California in 2008. Nationwide, clients pay day, the estimated annual rent of $ 40 billion.