Robert L. Johnson launching alternative to PayDay loans this summer

RLJ Companies Chairman/BET Founder, Robert L. Johnson

Serial entrepreneur and founder of Black Entertainment Television (BET), Robert L. Johnson has revealed that he is looking to launch a lending program to compete with payday lenders and help break a cyclical borrowing pattern that has squelched many African Americans and minorities’ buying and savings power.

According to Johnson, an alternative is needed because payday loans prevent African Americans and others from saving money.

“There’s absolutely no reason why this country should allow that kind of lending process to take place if there are alternatives, and there are alternatives to this type of lending,” Johnson said. “And we’re working on a plan to end payday lending as we know it today.”

The interest rate from payday lenders on a two week loan is often 400 percent to 450 percent.

Read more: Washington Business Journal