Why Payday Loans Are Better Than Indentured Servitude


For a spot-on spoof of an evil trade group website, visit the Predatory Lending Association, whose stated mission is to “help predatory lenders extract maximum profit from the working poor and retired poor with payday loans.” The site includes debt calculators, an interactive “PoorFinder” map, and a helpful explanation of the difference between 450% APR payday loans and old-fashioned debt bondage:

predatory_lending.gif

It’s not clear who’s behind the parody (a good guess would be the Yes Men, but the absurdity-to-reality ratio is too low), but it seems to be inspired by North Carolina’s 2006 decision to outlaw payday loans. That move has proved quite popular, according to a new UNC study [PDF] that found that 90% of respondents, including those who had used check-cashing stores, said payday loans are a “bad thing.”

Update: In comments, pablo points to this interview with the site’s creator, a “Seattle Internet entrepreneur.”

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