Those who compete against payday loan, car title loan and installment lenders – banks, credit unions, pawn shops… always refer to payday loan APR’s as “outrageous!” And yet, a cursory review of this “APR Bank vs Payday Loan Comparison Chart” below, clearly refutes the validity of this claim.
The following chart is based upon an independent study performed by Dr. Dan Oglevee and Dr. Bill Reeves, finance professors at The Ohio State University. It compares the actual and annualized interest rates for a variety of short-term loans and banking and credit services.
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