WASHINGTON — The three former payday lending employees have largely backed up some of the most explosive criticisms that opponents of the controversial lending business have made: that payday lenders target members of minority groups and manipulate borrowers into long term indebtedness.

In press accounts of a press conference called to support legislation which would cap payday loan at 24%, Michael Donovan, the former district director for Check ‘n Go, reportedly said that “we virtually guarantee customer retention by encouraging customers to borrow up to 85 percent of their gross income. That is, more money than they actually receive in take-home pay” and reportedly adding that repeat business is essential for the survival of the firms. “It is the basis for bonuses. It is the basis for store payroll budgets,” he has been quoted as saying.

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