The Same Payday Lenders Interest Rates Vary State by State

The same companies dominate the payday loan market throughout the country and charge whatever interest rate a state allows. A review of the biggest lenders’ websites shows that a $1,000 loan costs $320 in Colorado, $536 in Ohio, and more than $1,400 in Virginia. In other words, the same credit—from the same payday lender—is available to similarly situated people in all three states. With interest rates as high as 400% annualized, Payday-type loans rake in more than $9 billion a year in fees and interestaccording to Pew Charitable Trusts, a nonprofit research group.