Pawn Shops and Payday Lending Grows During Government Shutdown

Almost 800,000 U.S. government workers are out of work due to the shutdown and high cost, short term lenders are becoming a vital option for families to make ends meet; banks have helped out some workers by allowing them to skip payments without penalties but they removed themselves from short term lending after the 2008 financial crisis; some lenders like World Acceptance are lending up to $1,250 for a 10 months with 0 percent interest and no fees, not a typical loan in this space; the payday lending industry has come under a lot of scrutiny in recent years as they are seen as being predatory; with no end in sight to the shutdown these lenders are playing as key role in helping families pay bills even if at a high cost. Source.

  • Todd is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists. He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences. He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.

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