Oklahoma’s Payday Loan Laws are Tolerant Says Survey

According to the recent national survey the small-loan laws in Oklahoma are charging the highest interest rates in the history of payday loaning in the United States today.

A research conducted by the Pew Charitable Trusts entitled “Payday Lending in America: Who Borrows, Where They Borrow and Why” has found that 13 percent of the population of Oklahoma are the highest in the payday loan customers in the market today across 32 states.

Out of 49,684 of the residents, 5.5 percent are using payday loans to pay their debts in the last five years. Payday loans are short-term loans consisting of small amounts which have the tendency to get very expensive. People who apply for these loans are usually those who do not have the qualifications to get a credit loan.

In Oklahoma, borrowers are only allowed to have only one payday loan and the state caps the lenders at $500 with a maximum fee of $65. But the District of Columbia along with 14 other states does not have any payday loan stores.

According to the State Sen. Rick Brinkley who also holds the position of chief operating officer in the Better Business Bureau of the eastern part of the state the Pew study’s classification of their payday loan laws is indeed lenient, for even if the law allows the lending there have been few customer complaints about the lenders.

Experts say that payday loans usually carry out a chain reaction for debt because the borrowers tend to renew their loans again and again until the service cost increases and becomes even more expensive.

Studies show that the minute people start to turn to payday loans it would not be very easy to get out and it would take years to pay off the whole debt.

The study by Pew has identified living expenses like rent and utilities expense to be the most common reason for people to apply for payday loans.

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