High Interest Payday Loan Lenders Target Vulnerable Communities During COVID-19

With millions of Americans unemployed and facing financial hardship during the COVID-19 pandemic, payday loan lenders are aggressively targeting vulnerable communities through online advertising.
Some experts worry more borrowers will start taking out payday loans despite their high-interest rates, which happened during the financial crisis in 2009. Payday lenders market themselves as a fast financial fix by offering quick cash online or in storefronts — but often lead borrowers into debt traps with triple-digit interest rates up to 300% to 400%, says Charla Rios of the Center for Responsible Lending.