Question

What are payday loans and why do you think some states have banned payday loans? What are some of the interest rates on these types of loans? What is a loan shark? What are examples of famous loan sharks?

Answer 1

Answer 1.

Payday loans are cash loans that are often used when someone needs the money immediately. The borrower leaves a check with the amount of the loan plus an extremely high fee, when the borrower is ready to pay, the lender uses the check.

Some states have banned payday loans as a measure to stop the abuse of high fees to borrowers, and to stop the cycle of borrowing.

Answer 2.

The average interest rate on a payday loan is 391% when you can repay the loan in two weeks, after that the rate grows to an average of 521%. From every $100 borrowed there is an interest fee of $15 or $20.

Answer 3.

A loan shark is a lender that charges interests above the established legal rates, they often act in an illegal way and take advantage of the people's desperate need to get money. A loan shark has cruel ways of getting their money back they often use violence and harassment to get paid.

Famous Shark Loans:

Some examples of famous loan sharks are Sam Battaglia, Jimmy Caci, Fiore Buccieri and Anthony Salerno.