Rob Linn notes that “Nationally, payday lending customers get caught in a predatory cycle.” In his analysis he found that 12% of payday lenders in Detroit were unlicensed, claim false affiliation with FDIC, and almost always go unenforced and unpunished. Rob also found that these predatory lenders were concentrated in areas where a majority African American population lives.

“Given the Detroit City Council’s willingness to standup to other harmful businesses, it’s time to increase enforcement, if not regulation, of these lenders at the local level.  As it stands, the residents who can least afford these punishing rates are the ones facing the consequences. “