Concerned with predatory lenders, Broward County officials stated they are going to consider providing workers crisis loans with reduced rates of interest.
Commissioners decided to look for bids from financial institutions whom may want to form teams with Broward County, providing crisis loans as much as $5,000 to workers, including individuals with dismal credit reviews.
The county employs a lot more than 5,000 individuals, and union leader Dan Reynolds regarding the Federation of Public Employees asked for the loan system couple of years ago, talking about some loan providers as “vultures.”
“those who reside paycheck to paycheck really should not be taken advantageous asset of simply because previous challenges that are financial brief product sales, divorces or medical dilemmas have gone these with blemished credit,” he penned in a page to County Administrator Bertha Henry.
Worker crisis loans are available by the Broward County class Board, Leon and Seminole counties, the metropolitan areas of Fort Lauderdale and Dania Beach, as well as other government and nonprofit employers in Florida. A vendor that is third-party the mortgage, and it is reimbursed by the worker.
Commissioner Mark Bogen brought ahead the proposition Tuesday, saying payday lenders charge excessive interest, trapping individuals into an cycle that is endless.
Bogen stated there are many more than 120 cash advance stores in Southern Florida, recharging compounding interest that equates to 240 to 300 %. (more…)