Three technology entrepreneurs just launched a satire site exposing the payday loan industry:
The Predatory Lending website is a unique political cartoon. It combines cutting edge technology (Web 2.0 Google mash-ups), very deep coverage of the payday loan issue, and dark humor. The website has a military base finder to locate armed forces lending opportunities, a comparison of payday lending and indentured servitude, and racial profiling tools.
Payday loans often carry interest rates around 400% APR. The 2007 Defense Authorization Bill capped loans to military personnel at 36%. Consumer advocates are calling for the interest rate cap to extend to all citizens. Some states such as North Carolina, have completely eliminated payday loans with a combination of interest rate caps and short-term loans from state credit unions.
Check out the website and leave a comment about payday lending in the discussion forum: