ANSWER Coalition (Act Now to Stop War and End Racism) volunteers in Washington, D.C. joined demonstrators on June 29 to protest payday lenders. Payday lenders are companies that engage in this business charge exorbitant interest rates in poor communities across the city.
Protesters picketed, distributed leaflets and chanted in front of a Check N’ Go branch located directly across the street from Fort Lincoln Retirement homes in a working-class neighborhood.
Payday loans generally are short-term loans intended to cover a borrower’s urgent expenses until their next payday. Typical loans are between $100 and $1500, are usually on a two week term. Interest rates can run as high as 391 percent.
While banks and credit card companies have regulations limiting the amount of interest they can charge consumers, payday lenders have been able to bypass any such limits. The lenders make large contributions to politicians. Studies in Washington, D.C. have shown that borrowers pay $708 on average for a $325 loan.
A bill is pending before the Washington, D.C. City Council (B17-132) that would put limits on these exploitative practices. Rev. Graylan Hagler, pastor of the Plymouth Congregational United Church of Christ, initiated the protest.
