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 ...
Then roll it and take it to your bank.
You don’t have to go to the counting machines.
.
Thanks to the rats and scotus, the CFPB is tyranny by politburo. Like Obama’s Death Panels, it is answerable to no one.
Someone explain to me again how an Article V Convention of the States is so dangerous.
“No one FORCES any individual to use a payday loan”
In fact one could argue they provide a valuable service for the stupid, and their rates are necessary to protect their business against 50% + default.
“how about you force banks to make loans easier and more affordable,accessable while you are at it? “
Because we’re not stupid.
“What about coin counting machines?”
I had a huge bowl full of change. When I saw the machine would take 10%, I just went to the bank and got paper rolls, and to Walmart for a cheap coin counting device. Took a while, but I was in no hurry, and saved myself 80 bucks! Just waited for a super cold snowy day, sat down with some beers, and did it.
Some machines give you full value if you take the payout in the form of Amazon credit voucher. That’s what I use.
So payday loads, which can only make money on the extremely high risk by high interest rates, are banished to the hinterlands and now unavailable to Californians.
YAY California. The single mom whose car breaks down and needs a $400 transmission replacement now goes where? Chances are good she doesn’t have any relatives. Prepare for the return of the loan shark, complete with knee-breaking collection practices.
California hurts the poor again and still gets to think it is helping.
Evil people, these California legislators and their cheerleaders.
I had about $1200 in change counted at the bank, the bank was charging me a fee, when the counting was done, I had them make out the check to wounded warriors. They made it out for the full amount without the fee.
Get a loan from the mob, and it may literally cost you an arm and a leg.
Like before the housing crisis?
Exactly. Everybody knows exactly what they're getting into. Barring outright fraud, leave people alone and let them deal with the consequences of their actions.
Exactly. Everybody knows exactly what they're getting into. Barring outright fraud, leave people alone and let them deal with the consequences of their actions.
How about predatory student loans?
Most of mine are direct deposit.
When I do get a check, I whip out my phone and PRESTO!
Deposited.
“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) “
You’ve just discovered a horrible social curse. Worst of all, it just doesn’t just apply to pay day loans. The most horrible example is large SUVs that have colluded with guns. Over and over, such an SUV, collusively armed with a whole arsenal of virulent assault weapons, will drive onto a school yard filled with innocent children, run down as many as possible, and then release the guns to massacre all the rest. OH, THE HORRORS OF IT ALL!!
Exactly. The freemarket is called “predatory” because the deadbeats can’t make payment they AGREED to. If the gubmint forces how the lenders operate, perhaps the gubmint should also charge those that cannot pay back their obligations. It is only fair. Why only punish the businesses?
Legal loan sharks. These stores tell you up front they’re shysters. Still, people sign on the dotted line. Stupid is as stupid does.
You are free to get some coin rolls at the bank, count your coins and roll them yourself.
Obama made banks give loans to illegals for houses they couldn’t afford.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.