Millions of people across the country are filling out unemployment claims, as the coronavirus pandemic continues to wreak havoc.
“More people are turning to payday loans because they are in desperate need of money,” Jane Rupp, Pres. Better Business Bureau of Utah and Northern Nevada said.
So far this year, BBB Utah has already received almost the same number of payday loan complaints as it has for all of 2019, Rupp said.
The BBB has offered some advice on payday loans click here to read them.
It’s important for people to understand what a payday loan entails, including its high interest rate, Rupp said.
The average annual percentage rate charged in Utah on a payday loan is 522.56 percent, according to the most recent report from the Utah Department of Financial Institutions. To view the latest report of the Utah Financial Institutions Commissioner Annual Report, Click here.
“Sometimes people are desperate enough to have to take payday loans, unfortunately. If you know everything you’re going to pay and can pay it off, a payday loan may be the thing you’re looking for, ”Rupp said.
Every day, people come to the CrossRoads Urban Center in downtown Salt Lake City. Unfortunately, the associate director. Bill Tibbitts has seen many people in dire straits take advantage or take out a payday loan that they cannot repay.
“We fear that people who barely have enough money to make ends meet, or who don’t have enough money to make ends meet, will make mistakes that will leave them with even less money,” he said. he declared.
When people need financial help, the Utah Fair Credit Foundation nonprofit is there to help. While things are looking good for a lot of people now that they get unemployment and the stimulus check, Ellen Billie, Programs Dir. Fair Credit Foundation, said she was nervous about the future.
“I haven’t seen a whole bunch of payday loans yet, but I’m very, very worried about it,” she said.
Since many payments can be deferred right now, Billie is worried about what the fall will bring when the bills come due.
“It all ends at some point and that’s what worries me the most,” she said.
FOX 13 News reached out to several payday loan companies for a response to this report, but none responded to our request for comment.
For more information on the CrossRoads Urban Center, click on here.
For more information on the Utah Fair Credit Foundation, click here.