“The loan came with a yearly interest rate of 197%. That ballooned her initial $1,250 loan into a total payment of $3,400 that she paid off early last week. Had she not done that, it could have cost her another $2,000.
“It’s a story that plays out constantly in Black and Latino communities.”
https://news.wttw.com/2021/03/09/legislation-could-end-illinois-payday-loan-industry
That article is in reference to a proposed Illinois state law.
The alternative is no one would lend her money. Risk too high, reward too low. Don’t get me wrong, payday lenders are bottom feeders but it is a market in which the vacuum was filled.