He had never walked into a payday loan shop, but Cleveland Lomas thought it was the right move: It would help him pay off his car and build up good credit in the process.
Instead, Lomas ended up paying $1,300 on a $500 loan as interest and fees mounted and he couldn’t keep up. He swore it was the first and only time he’d visit a payday lender.
“It’s a complete rip-off,” said Lomas, 34, of San Antonio. “They take advantage of people like me, who don’t really understand all that fine print about interest rates.”
Lomas stopped by the AARP Texas booth at a recent event that kicked off a statewide campaign called “500% Interest Is Wrong” urging cities and towns to pass resolutions calling for stricter regulation of payday lenders.
Know someone who’s been impacted by predatory payday or auto title lenders? Or have you had a personal experience with these incredibly high interest loans? Let us hear about it. Your story will make a difference. Let your voice be heard!
