According to the Center for Responsible Lending, payday lenders cost American families $4.2 billion every year in predatory fees.It can be tempting for people waiting for Social Security Disability benefit or SSI benefit hearings to borrow money from one of these "cash advance" or "payday loan" services. It seems like these places are on every corner in Knoxville and other parts of East Tennessee. Any lawyer will tell you, "it isn't worth it."
It's appalling, but the minimum charge for these loans, fifteen dollars per $100, equates to a 390% annual percentage rate, or APR - that's multiplied by 26 paydays! Incredibly, only 2.5% of payday lending chains' customers stop at just one loan. Most customers average 5 to 10 loans - up to a 1,800% APR.
Payday lenders won't hesitate to loan to people getting Social Security disability checks.
Don't take my word for it. Take some time and read the report for yourself.
Cannon & Anderson, Attorneys
Straight Answers about Social Security Disability
2916 Tazewell Pike, Ste. F
Knoxville, TN 37918