For many who are in trouble financially, their only option is to get money from a payday loan or "E-Z cash" business. But the fees, charges and interest that go with that can lead to big trouble down the road.
IowaWatch digital analyst/reporter Lauren Mills spoke on Beth Malicki's "To the Point" program on KCRG-TV9 for a program about her investigation into why the payday loan industry is not regulated more than it already is in Iowa.
The Consumer Financial Protection Bureau has begun acting to rein in abuse, producing a report critical of the industry and requiring two payday businesses to provide refunds and pay million-dollar fines. The bureau also is drafting rules that could provide further protections for consumers.
Brian Curtis took out his first payday loan when he was 19. It took more than a decade before he got out from under it and the climbing interest payments
Some financial institutions, banks and credit unions in Iowa are trying to create alternatives to payday loans and help people who are unbanked open accounts. The program provides second-chance bank accounts and small dollar loans.
