Skip to comments.Finally, a crackdown on predatory payday loans
Posted on 10/07/2017 11:33:46 AM PDT by EveningStar
The Consumer Financial Protection Bureaus new rules for payday loans and car title loans have drawn the predictable cries of outrage from lenders, particularly small storefront operators who say the restrictions will put them out of business. And its an understandable complaint after spending five years researching the market for high-cost credit, the bureau has fired a shot right at the heart of these lenders business model.
But the outrage here isnt what the regulators are doing. Its the way these lenders have profited from the financial troubles of their customers. As the bureaus research shows, payday lenders rely on consumers who cant afford the loans they take out. With no way to repay their original loans other than to obtain further ones, most of these customers wind up paying more in fees than they originally borrowed.
Thats the definition of predatory lending, and the bureaus rules precisely target just this problem. They dont prohibit lenders from offering the sort of financial lifeline they claim to provide one-time help for cash-strapped, credit-challenged people facing unexpected expenses, such as a large bill for medical care or car repairs. Instead, they stop lenders from racking up fees by making multiple loans in quick succession to people who couldnt really afford them in the first place.
(Excerpt) Read more at latimes.com ...
Predatory? No one FORCES any individual to use a “payday” loan, and it’s way cheaper and less threatening to one’s health than your local mobbed-up loan shark!
Re-watch the Dickems movie The Christmas Story and pay attention to Mr Scrooge.
Cadillacs...we don’t have them long, but we have them first!
Selling people loans, cars, and houses they can’t afford is the reaction to being labelled racist if you don’t. Barney Frank and the FHA made it a way of life.
At least payday loan stores don’t send a goon go break your knees if you’re slow-pay.
While their interest rates are high, do they serve a purpose; do they help people who are in a financial jam?
As I understand it, these places give you what is supposed to be an advance on your next paycheck.
You have other problems with money, if you find you have to take out an additional loan to pay off the first loan, rather than just use your paycheck to pay off the first loan and be done with it.
A lot of these payday loan folks grab people off the street, drag them into their offices and force them at gunpoint to take out the loans they don't want or need. Its called drumming up business. (/s)
Democrats: Making America Great Again- for gangster loansharks!
If I’m not mistaken, California prohibits using a second payday loan to pay off the first one.
Are they going to ban pawn shops?
Funny how these people making these legislations never go after Hillary Whitewater deals...
Now they have to go to the First Bank of Vito.
I have a friend who sometimes gets a payday loan. She has a regular check, but, she would be the first to admit that she overspends sometimes and needs this help.
It’s her choice.
Today’s ‘poor’ person in America has trappings that I’ve never had. Cable TV, 0bamaphones, gold teeth, nice cars, $100 purses, etc.)
As an added bonus, *I* get to PAY FOR THEM through my tax dollars!
How about we do something about THAT, first? The American TAXPAYER is the Payday Loan Office for a whole bunch of LOSERS.
What about coin counting machines?
8-10% fees to count my money?
Money should be free
Take the cannoli!
A few years ago, my wallet was stolen. I got it back but had to open new accounts for everything. Using one of these services for awhile was the best way to switch accounts without confusion.
How about we redefine the national debt as a predatory loan?
They did that. It didn’t turn out too well....
It’s not personal Sonny, it’s strictly business.
These places are less expensive than the bank in some cases and they give you a loan way easier. Pay it back on time and it is not a problem. I sometimes go there to cash a check for the fee rather than deal with the bank line and wait.
I use them like a 711 convenience store, paying a little more for the convenience. Sign my name on the check, slip it under the window and back comes my cash.
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