Last week, Sherry Shannon of Roseville came to the payday lending reform hearing at the Senate Commerce Committee to share her story. A single adult on disability, Sherry can’t afford to lose even $35 per month on payday loan fees. Thanks to her brave testimony, the bill passed out of Committee. This is what she said.
My name is Sherry Shannon, and I live in Roseville.
In December of 2012, I took out my first payday loan from the Payday America at 26th & Nicollet. I was moving, and I had some extra expenses from the move. So I took out a payday loan for about $140 dollars, which had an APR of 260% .
Since I receive social security disability, I was told to come back on the third of the month to pay my loan. So I paid the amount and took out a new loan on the same day to cover my expenses. Every month when I receive my social security check, I pay off my loan and take out a new one – and I don’t see how I’m going to get out of this cycle. Today, I owe $264, and the APR of my current loan is 171%. In the last year, I’ve paid nearly $500 in fees to Payday America but I still owe them $264.50.
After a few loans, I was stuck. Once you’re in this trap, it gets harder and harder to get out.
That’s why I’m here – to ask you to please support this bill and change the situation for me and other people in my situation. Thank you for listening.