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Finally, a crackdown on predatory payday loans
Los Angeles Times ^ | October 9, 2017 | Editorial Board

Posted on 10/07/2017 11:33:46 AM PDT by EveningStar

The Consumer Financial Protection Bureau’s 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 it’s 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 isn’t what the regulators are doing. It’s the way these lenders have profited from the financial troubles of their customers. As the bureau’s research shows, payday lenders rely on consumers who can’t 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.

That’s the definition of predatory lending, and the bureau’s rules precisely target just this problem. They don’t 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 couldn’t really afford them in the first place.

(Excerpt) Read more at latimes.com ...


TOPICS: Business/Economy; Culture/Society; Editorial; Government
KEYWORDS: consumer; finance; loans; paydayloans; predatorypaydayloans; socialism
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1 posted on 10/07/2017 11:33:47 AM PDT by EveningStar
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To: EveningStar

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!


2 posted on 10/07/2017 11:40:05 AM PDT by JimRed ( TERM LIMITS, NOW! Build the Wall Faster! TRUTH is the new HATE SPEECH.)
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To: EveningStar

Re-watch the Dickems movie The Christmas Story and pay attention to Mr Scrooge.


3 posted on 10/07/2017 11:43:57 AM PDT by SandRat (Duty, Honor, Country)
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To: EveningStar

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.


4 posted on 10/07/2017 11:45:55 AM PDT by sparklite2 (I'm less interested in the rights I have than the liberties I can take.)
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To: EveningStar
how about you force banks to make loans easier and more affordable,accessable while you are at it?
5 posted on 10/07/2017 11:46:48 AM PDT by Craftmore
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To: JimRed

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.


6 posted on 10/07/2017 11:47:32 AM PDT by Dilbert San Diego
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To: JimRed
Predatory? No one FORCES any individual to use a “payday” loan,

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)

7 posted on 10/07/2017 11:48:05 AM PDT by 17th Miss Regt
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To: EveningStar

Democrats: Making America Great Again- for gangster loansharks!


8 posted on 10/07/2017 11:51:46 AM PDT by mrsmith (Dumb sluts: Lifeblood of the Media, Backbone of the Democrat/RINO Party!)
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To: Dilbert San Diego

If I’m not mistaken, California prohibits using a second payday loan to pay off the first one.


9 posted on 10/07/2017 11:51:51 AM PDT by Bob (Damn, the democrats haven't been this upset since Republicans freed their slaves.)
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To: EveningStar

Are they going to ban pawn shops?

Funny how these people making these legislations never go after Hillary Whitewater deals...


10 posted on 10/07/2017 11:52:27 AM PDT by JudgemAll (Democrats Fed. job-security Whorocracy & hate:hypocrites must be gay like us or be tested/crucifiedc)
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To: EveningStar

Now they have to go to the First Bank of Vito.


11 posted on 10/07/2017 11:52:56 AM PDT by dfwgator
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To: EveningStar

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.


12 posted on 10/07/2017 11:54:49 AM PDT by RickGee
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To: EveningStar; All

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.


13 posted on 10/07/2017 11:56:05 AM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set!)
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To: EveningStar

What about coin counting machines?

8-10% fees to count my money?

Money should be free


14 posted on 10/07/2017 12:01:33 PM PDT by Vendome (I've Gotta Be Me - https://www.youtube.com/watch?v=wH-pk2vZG2M)
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To: dfwgator

Take the cannoli!


15 posted on 10/07/2017 12:02:12 PM PDT by Autonomous User (During times of universal deceit, telling the truth becomes a revolutionary act.)
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To: EveningStar
This is insane. Banks totally zap people without rather large minimum balances, and get them with fees for everything. These outfits provide a necessary service for those who either can't or don't want to have a relationship with a bank. They also offer (or used to) prepaid credit cards as a nice option for people who can't establish credit.

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.

16 posted on 10/07/2017 12:02:20 PM PDT by grania (Deplorable and Proud of It!)
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To: EveningStar

How about we redefine the national debt as a predatory loan?


17 posted on 10/07/2017 12:02:24 PM PDT by Stosh
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To: Craftmore

They did that. It didn’t turn out too well....


18 posted on 10/07/2017 12:02:50 PM PDT by clintonh8r (AMERICA! THANK YOU FOR MAKING MY SCREEN NAME OBSOLETE!)
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To: dfwgator

It’s not personal Sonny, it’s strictly business.


19 posted on 10/07/2017 12:04:49 PM PDT by BipolarBob
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To: EveningStar

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.


20 posted on 10/07/2017 12:05:53 PM PDT by gunsequalfreedom
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