"Got no job? We don't care. Got a prison record? We don't care. Don't expect to pay us? THAT'S when we care."
Posted on 06/03/2016 4:28:01 AM PDT by IBD editorial writer
Banking: The Consumer Financial Protection Board has proposed new rules that will needlessly put tens of thousands of people out of work, all but ruin a $40 billion industry, deny many low-income families access to credit, increase bankruptcies and turbocharge the loan shark industry. Yet it’s being heralded as a great advance for society.
(Excerpt) Read more at investors.com ...
They serve the underclass.
Big Gov must wear the white hat.
Can’t have private sector help them in any way.
No, Big Gov is your daddy. Not evil capitalist.
Because profit.
Getting an ordinary generic loan nowadays is very difficult unless you have a specific sector like autos, schools, etc . . . Some people need these loans and I don’t have an answer and neither does the government.
As usual, the government treats the symptom, not the cause - underemployment and generations of people with virtually no money management skills, never mind, basic arithmetic.
Payday Lending industry is not exactly a sympathetic victim. I guess they perform a service that people want but it’s a pretty horrible bargain
.
Sadly, lending abuses go back to biblical days. They prey on the weakness of many (at least one third of people) to borrow whatever is offered to them, and not worry about how to pay it back. Sorry, but THIS CONSERVATIVE believes it needs to be regulated.
I got a taste of it myself once, when I had a house built slightly under budget (about $20k). The lender said, something like why aren’t you taking the extra $20k that the loan is authorized for. I said that I don’t need the cash and would rather keep the principal down. HE FREAKED - he thought I was nuts. I guess I was the first person that ever rejected his ‘free’ money.
Unlimited revolving credit at usurious rates is such a good industry. Arkansas outlawed them several years ago. Of course where their interest rates are limited like pawnbrokers, they have all gone out of business./sarc/
It’s not that these regulations are well written. The feds under Obama don’t regulate without a political twist. It’s that Vinnie the shark is less predatory than this industry. Had these people done even a reasonable job of limiting and policing their practices they might have an argument against stupid regulation.
Yeah, you’re absolutely right! Mafia-related loan sharks are so much better as a source of lending of last resort.
You only have to pledge the integrity of your knee caps to get a loan; not something so foolish as a good part of your paycheck.
Better yet. let’s turn everything into a “black market” simply because of distaste for a necessary segment of an industry.....foolish prig!
Are “you serious”?
Consider this look at the issue. Sure, I don't agree with John Oliver politically, but this is still a great segment.
I hit a really “down” time of nearly three years in the 90s. I took out three loans, interest as high as 100%. Great bargain, no but my choice at the time was:high interest; rob a grocery store; or lose the house. I somehow got all of them paid off on time (folk at the loanshark shop told me that was rare for them). I finally got back into a good job, everything clean, but Bud when I needed it, I was glad to have these loans available.
The government creates the disease and then treats the symptoms.
Fair enough. They’re better than the mafia.
the difference between “payday lenders” and regular financial institutions is why they want to ban them.
A Payday Lender(short Term)is a “HARD MONEY” lender by definition, they are loaning their OWN MONEY and the Fed and Commercial Banks get NOTHING OUT OF IT, whereas ALL other Financial Institutions DO NOT Loan their own Money, All Money is CREATED on the Spot to meet the demands of said LOAN. The Fed and Commercial Banks ALL GET THEIR CUT.
Payday lenders have branched out. Now they do check cashing and money transfers. In sanctuary city TX, formerly known as Fort Worth they are everywhere that “migrants” are located. They have gone from small one room offices to huge corner lot buildings that compare to Wells Fargo or similar banks. Ripping off the Julios of their tax free pay every Friday. Can’t believe the line into these places on payday!
“It’s your money and you deserve it.....”
In Nashville it’s the same. They are in the parts of town where Central Americans have settled. Being here illegally means they don’t have access to a basic bank account that might have something like overdraft protection built in. It’s a niche industry primarily serving the illegal alien community.
Online loan sites and crowdsourced lending will boom.
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