Date :- Dec 16, 2008

OKLAHOMA CITY (AP) - With a sluggish economy, more Oklahomans are turning to high-cost loans with equivalent annual interest up to 500% or more to make it through tough times.

A report on Oklahoma's so-called payday loans lending industry showed more than 1 million loan transactions were made from July 2007 through June 2008. The report shows the average borrower took out more than nine loans during that period.

Former Oklahoma Department of Consumer Credit Administrator Donald Hardin says the high-interest loans are designed to exploit low-income people who regularly come up short on their monthly bills.

But Dylan White, operations manager for Federal Cash Advance of Oklahoma, disagrees.

He says many Oklahomans who have poor credit ratings and live paycheck to paycheck often face few good alternatives when they need access to quick cash for an emergency.

Source :- Google News