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Ms. Beth Orlansky
Jackson, MS
Mississippi Center for Justice

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What state/federal reforms can protect consumers from usurious payday lending schemes? What legal or policy framework could support banking systems to benefit the poor? (Fully Subscribed)

Without access to banks, the poor use an alternative system: payday lenders and check cashing stores. These institutions charge extraordinarily high fees compared to traditional banks - the typical two-week loan has an annual percentage rate of 468% on a $400 loan. The poor pay a penalty, reducing already lean assets. Low-income Mississippi communities end up with a predatory banking system, kept in place by a legal system hidden in the background. What state/federal reforms can protect consumers? What legal or policy framework of incentives, rules and processes could support developing banking systems to benefit the poor?
 
Paper due date: January, 31 2009
Author availability: 1 initial 30-minute conversation