Rules threaten payday loans for low-income borrowers

Many Americans take for granted that if they have a toothache and need a cavity filled, they can…

Georgia (Jun 10, 2015) — Many Americans take for granted that if they have a toothache and need a cavity filled, they can afford to pay the dentist. If their car broke down tomorrow, they could pay the repair shop with cash or on credit. But for most low-income households living on extremely tight budgets, those options aren't available. 

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http://www.detroitnews.com/story/opinion/2015/06/10/joseph-rules-threaten-payday-loans/28757335/

A recent survey from the Federal Reserve finds that two-thirds of Americans making under $40,000 per year would have to sell something or borrow money in the event of a $400 emergency expense…

Another recently released academic study from Jennifer Lewis Priestley, a professor at Kennesaw State University, examined the impact a high number of payday loan rollovers had on borrowers' credit scores. She found that borrowers with a high number of rollovers actually saw more positive impact on their credit than consumers with few rollovers. Borrows who did experience a decline in credit scores were more likely to live in states that have laws restricting access to payday loans.

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A leader in innovative teaching and learning, Kennesaw State University offers more than 150 undergraduate, graduate and doctoral degrees to its more than 41,000 students. With 11 colleges on two metro Atlanta campuses, Kennesaw State is a member of the University System of Georgia and the second-largest university in the state. The university’s vibrant campus culture, diverse population, strong global ties and entrepreneurial spirit draw students from throughout the region and from 126 countries across the globe. Kennesaw State is a Carnegie-designated doctoral research institution (R2), placing it among an elite group of only 6 percent of U.S. colleges and universities with an R1 or R2 status. For more information, visit kennesaw.edu

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