How has this decision really impacted consumers? A number of instances in Florida involving payday loan providers shows just how devastating itвЂ™s been.
In Florida, making that loan with an interest that is annual above 45 per cent is known as вЂњloan sharking,вЂќ and it is a criminal activity. This is certainly, unless the legislature passes a law making an exclusion, which it did for payday advances in 2001.
Ahead of September 2001, loans with rates of interest above 45 per cent had been outright unlawful.