Pay day loans are when you look at the cross hairs with this 12 months’s ballot.

Proposition 111 would restrict interest levels to 36 per cent on loans which can be often advertised as quick-fixes or one-time discounts for emergencies.

But consumer advocates state that is often far from the truth. Borrowers can end in a vicious period whenever, not able to spend down that loan, they increase it, which costs them much more.