Short-duration, high-cost loans are becoming an increasingly more common workplace benefit, The Wall Street Journal reported on December 15.
Companies such as Arizona Restaurant Systems, Inc., based in Scottsdale, Arizona, are among a growing subset of American businesses offering their employees micro-loan services. Employees can take out loans as low as $150, depending on the workplace program.
Businesses cited demand among employees for an alternative to payday loans. In some places, workers typically pay half the interest rate required by payday lenders.
“We really strive to be able to give our associates another alternative so if they find themselves in a bind there’s a better option than going to the payday-loan place on the corner,” La Tonya Hunter, HR director for the Hyatt Regency Hotel in New Orleans, told the Journal in an interview.
Earlier this month PYMNTS reported that New York state regulators have begun taking action against payday lenders. Read the full story by clicking here.
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