Missouri's Better Business Bureau: More than 90 nursing homes offer payday loans
Tuesday, August 18, 2009 | 3:42 p.m. CDT;
updated 10:53 a.m. CST, Wednesday, November 4, 2009
ST. LOUIS — A study by the Better Business Bureau has found that more than 90 nursing homes in Missouri make payday loans to their own employees at high interest rates, then deduct payment of the loan, interest and fees from the workers' next paychecks.
The arrangement is legal, but the BBB questions the ethics of employers making money off the wages of their workers.
The state prohibits payday loan operations from being on the premises of nursing homes. But the parent company of a nursing home is allowed to also own a payday loan operation. Employees can take out loans through computer terminals at the nursing homes.
Missouri allows payday loan lenders to charge up to 1,950 percent annual percentage rate on two-week payday loans.
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