NBC: Predatory loans offer tempting stopgap for federal workers missing second paycheck

January 31, 2019
In The News
Short-term, small-dollar loans are often high interest and predatory in nature — and attractive to the many Americans who face dire financial circumstances.
Predatory loans offer tempting stopgap for federal workers missing second paycheck

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In that spirit, Rep. T.J. Cox, a freshman Democratic congressman from California, introduced a bill last week that would force the U.S. Treasury to provide $6,000 no-interest loans to federal employees during the government shutdown. The bill has 86 co-sponsors and is in committee at the moment.

The congressman called the current situation “completely irresponsible” and hoped his bill would mean that employees wouldn’t resort to payday lenders to “bear the burden of the federal government.”

“They were put in this position, and not because they weren’t doing their jobs,” Cox told NBC News. “They were put in this position because of the distraction of this administration trying to make a political point.”

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