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1,000% loans? Scores of borrowers face crushing costs

1,000% loans? Scores of borrowers face crushing costs

Final xmas Eve, Virginia resident Patricia Mitchell borrowed $800 to aid cope with christmas. Within 90 days, she owed her loan provider, Allied advance loan, $1,800.

A small lender in Laguna, New Mexico, reports that some customers come to him seeking help refinancing loans from nearby payday lenders that carry annual percentage rates of more than 1,000 percent on the other side of the country, Marvin Ginn, executive director of Native Community Finance.

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