Ep 2. Payday

Dirty Money (2018) season 1 episode 2 titled "Payday" focuses on the payday loan industry, and how it preys on customers with financial struggles. Payday loans are small amount, short-term loans that are meant to be repaid by the borrower's next paycheck. However, with high interest rates and additional fees, many borrowers fall into a cycle of debt, taking out new loans to pay off old ones.

The episode interviews several borrowers who have been caught in this cycle, taking out loans to cover unexpected expenses or simply to make ends meet. These borrowers detail the egregious fees and interest rates they face, which can reach up to 500% or more. Some borrowers even lose their cars, as lenders require them to put up their vehicle as collateral.

The episode also focuses on the payday loan industry's lack of regulation and oversight. While several states have put regulations in place to limit the fees and interest rates charged by payday lenders, there are still many states where lenders can charge exorbitant fees without consequence. The episode interviews industry insiders who admit that the industry relies on trapping people in debt, and that they often target low-income individuals and those living paycheck to paycheck.

The episode also examines the political influence of the payday loan industry. Lobbyists for the industry have successfully blocked regulations in many states, using campaign donations and other means to sway lawmakers. The episode interviews one lawmaker who attempted to introduce legislation regulating payday loans, only to face backlash from the industry and its supporters.

However, the episode also highlights efforts to combat payday lending. Some states have successfully passed legislation limiting the fees and interest rates lenders can charge, while others have put caps on the amount of loans a borrower can take out in a year. There are also nonprofit organizations that offer low-interest loans as an alternative to payday lenders. The episode interviews representatives from these organizations and discusses the impact they have had in helping people break the cycle of debt.

Overall, "Payday" provides a sobering look at the payday loan industry and its impact on vulnerable individuals and communities. The episode raises important questions about the ethics of lending and the need for regulation and oversight to protect consumers.