TerryP
Staff
I'm not disagreeing with the argument here. I'm shocked at 36%!
Several years ago I was dating the regional manager of a credit union here in town. I'd never paid attention to "payday loans" until she brought up the interest rates. I was surprised, shocked. I'm pissed off my Visa is at 16%. Discover isn't any better. But, 36%!
Is it an anti-capitalist stance to say these rates need to be regulated?
Several years ago I was dating the regional manager of a credit union here in town. I'd never paid attention to "payday loans" until she brought up the interest rates. I was surprised, shocked. I'm pissed off my Visa is at 16%. Discover isn't any better. But, 36%!
"Proponents believe a cap on fees and interest would help consumers, especially subprime borrowers who have less than perfect credit histories, by limiting what they pay on payday loans and other less regulated short-term credit," the trade groups said. "In reality, its impact would extend far beyond payday lenders to the broader consumer credit market to cover affordable small-dollar loans that financial institutions are being encouraged to offer, along with credit cards, personal loans, and overdraft lines of credit.
"As a result, many consumers who currently rely on credit cards or personal loans would be forced to turn elsewhere for short-term financing needs, including pawn shops, or worse– loan sharks, unregulated online lenders, and the black market," the groups continued.
In the context of things being black and white, I'd suggest payday lenders are already a part of the black market. Is it an anti-capitalist stance to say these rates need to be regulated?