SAN JOSE, Calif. (KCBS) -- The Silicon Valley Community Foundation has released a report condemning predatory payday lending, which is disproportionately concentrated in low-income neighborhoods and communities of color.
Emmet Carson, the president of the foundation, says that these type of loans mean sometimes low-wage workers have to pay $800 to get a $300 loan.
KCBS' Betsy Gebhart reports
"We were flabbergasted. quite frankly, to understand that in some cases predatory payday lenders were charging as much as 400 percent for a loan," he said.
Carson says often people end up going to another lender to pay back the first. He says about one million Californians are desperate enough to do this.
The Foundation and the San Jose Mercury News are calling on Congress and state legislature to cap payday lending at 36 percent interest rate.
(ewi)
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