This really is no accident, claims Charla Rios, a researcher in the Center for Responsible Lending. Like other customer advocates, Rios calls the payday enterprize model “a debt trap by design.” As well as in reaction, the industry — well, sort of admits it. In 2007, the CEO of money America explained, “the concept in the industry is you’ve surely got to have that customer in, work to turn him in to a customer that is repetitive long-lasting client, because that is really in which the profitability is.” Those customers that are“long-term” barely dedicated by option, generate 90% of payday loan providers’ business.
Vidhya Bharti Prakashan