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The California Supreme Court found that although California sets statutory caps on interest rates for consumer loans that are less than $2,500, courts still have a responsibility to “guard against consumer loan provisions with unduly oppressive terms.” Citing Perdue v. Crocker Nat’l Bank (1985) 38 Cal.3d 913, 926.
Project description: The project is designed to address the public problem of payday loans in Central Indiana. The proposed model provides the same loans as the payday loans but at a much lower rate (36 percent vs. 390 percent) for a longer duration (30 days vs. 14 days).