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Elliott Clark Case Study

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Elliott Clark was working as a security guard in Kansas City, MO when he received a phone call; it was his daughter telling him that his wife had fallen in the backyard of their house. She had broken her ankle in two places, requiring two pins and a metal plate. Mrs. Clark was working for JC Penney and fell three days before becoming eligible to receive full health benefits. She ended up being out of work for almost eight months. Mr. Clark, a Vietnam veteran and father of two, quickly found himself responsible for all of the day to day expenses, as well as a $25,000 hospital bill. When, at the end of the month, he couldn’t make ends meet, he went to the bank to get a loan, but was told he did not qualify.
Feeling as though he was out of options, Mr. Clark approached a payday lender to borrow $500. He still struggled to keep up with it all. He recalls “taking one step forward, then two steps back.” Mr. Clark ended up borrowing five payday loans for a total of $2500. It took Mr. Clark over five and a half years to pay the loans off. In the end, he ended up paying more than $55,000 in interest and fees – twenty-two times the original principal of the loan. …show more content…
Clark, turned desperately to a payday loan. When the loan came due, Robideau could not afford to repay it; the lender offered to renew it, but only if Robideau was willing to pay a fee on top of the fee she already paid to receive the loan in the first place. She decided to “renew” the loan, meaning she paid the fee instead of repaying the principal balance of the loan. Robideau continued doing this until she was eventually borrowing from other payday lenders to repay the $800. That car repair ultimately cost Robideau thousands of

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