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Critics say high fees send the jobless into a cycle of debt
The payday loan industry has found a new and lucrative source of business: the unemployed.
Payday lenders, which typically provide workers with cash advances on their paychecks, are offering the same service to those covered by unemployment insurance.
No job? No problem. A typical unemployed Californian receiving $300 a week in benefits can walk into one of hundreds of storefront operations statewide and walk out with $255 well before that government check arrives—for a $45 fee. Annualized, that’s an interest rate of 459%.
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