Lending and debt are topics that are heavily on the minds of many, with all that’s going on in the financial world today, and recently the type of lending commonly called payday loans is coming under increased scrutiny. As consumer advocates point out it is all too easy to get caught up in a payday loan debt nightmare, and it is often those in the lower income brackets and those in the sub-prime lending group that get entangled in payday loans. LegalNewsLine reported recently that Illinois Attorney General Lisa Madigan is among state officials seeking to regulate the industry, and has requested that the legislative body in her state enact changes that will allow her office to regulate the payday loan industry in her state. The Daily Progress, a Virginia publication, reports that the city counsil of Charlottesville has passed a resolution that, like many other cities and localities in the state, requests that the General Assembly act soon to limit payday lenders to charging a maximum 36 percent annual interest rate on their unsecured, short-term loans. The Community Financial Services Association, a trade association of sorts for the payday lending industry, states that the average payday loan is for 14 days at a 15 percent rate of interest. read more

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