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For loans of one month, a payday loan business charges 1.75% of the amount borrowed as interest, plus a processing fee of $2.00 per $1000
For loans of one month, a payday loan business charges 1.75% of the amount borrowed as interest, plus a processing fee of $2.00 per $1000 borrowed. Is the business breaking the law by exceeding the legislated cap of an effective interest rate of 26% if processing fees are considered interest under the law?
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