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 ...
In a jam and you need some extra bucks at a high interest rate? No way lady!
In a jam and you want to kill your unborn baby? No problem - and maybe we’ll even pay for the abortion!
“I’ll pay you tomorrow for a hamburger today.”
>>This is federal law, not state law.<<
State law can be more restrictive not less.
This is probably the end of payday loans as they will go out of business — OR it will be worse for the people who need them just like obozocare ensured that people close to full time never got to it.
That's what grandchildren are for.
Absolutely true.
Read the FINE PRINT on these so called "loans".
Interest rates range from 275% to 492%
Holy cow, guys!
My comment was about the article and I assumed the “/s” was implicit.
I take two coffee cans to Safeway every 6 months.
I’m glad some machine counts that cap and 10% is fine by me, cuz I sure as hell won’t count them.
It feels like lotto money too, as I usually get anywhere from $400-$700 bucks!
That is grade A prime rib money which is usually the first thing I buy with my lotto winnings.
Pay day loans are provided on a high risk percentage and if you freakin need the money, then take the loan but, don’t bitch about the terms.
Same with auto loans. If you have to use Santander and absolutely need a vehicle then take the forkin loan and drive happy you have wheels.
College loan-ditto
Home loan-ditto
I have had 3 car loans, never used credit cards and purchase most things at outlet or discount stores.
These people who are label whores and taking loans for this that and everything can never, ever, ever get ahead because they are paying for an intangible and really, really just wasting their money.
I don’t think most people need these payday loans. They are a very expensive convenience and if you use loans then pay the piper.
Effin losers.
Oh, and I’m buying a Porsche in May. Cash...
I hate loans, always have.
I also found out I can pay for an entire years service through Cricket Wireless. So, I’m buying a Galaxy Note 8 and paying the entire year of service. All I can eat and on Verizon.
When you learn to live without loans, life is way way easier...
My dos centavos. ...
Restricting free markets in order to "protect the vulnerable" is never anything other than rent-seeking/guild behavior.
We count the quarters ourselves. They're easy.
The Coinstar ones I go to have no fee if you opt for a face value gift card, such as Amazon. I guess the profit is rewarded for sending customers to the business and the fact that a number of people don't use the card.
Most Banks locally won’t handle change at all
Dickens wrote a bunch of left wing crap that most dopes still consider to be “classics”.
“Obama made banks give loans to illegals for houses they couldn’t afford.”
The Hillbilly Whorehopper started it. Remember “redlining?”
Many big banks have stakes in payday loan companies. I’ve used them a few times, when I needed quick cash. Most of the time I paid it off within 3 days with no fee. I saw the other times as an expensive convenience fee.
>>>Then roll it and take it to your bank<<<
You don’t even have to roll it anymore. You take the bag of coins to the Bank and estimate how much is in there.
If it’s more than the estimate, they pay you the difference once the coins are counted and processed at the Cash Vault.
If it’s less, they debit your account for the difference.
I’ll be darned-——I guess I’m out of the coin counting loop.:-)
.
I’m sure the guy who used to manufacture those Coin Tubes felt like the guy who manufactures Bump Stocks today.
Time for a new Business Model.
Basically you are renting money for a short period of time.
Ever rent a car? Or a tool from Home Depot? By the time you rent a power tool 3 or 4 times you could have bought it and owned it. Those rates are just as predatory as “money rental” at a payday loan place. Yet I don’t see anyone going after Hertz or Home Depot for their predatory rates.
Local ads proclaim they ONLY charge 7% PER MONTH for their services......
You get to choose only one of the above.
It's a market thing...when lending money, the rate must cover the cost of default as well as cost of money and taxes. Play with any of those, and it affects the others.
BTW...has anyone else mentioned this Chavezista streak you display?
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