Quote:
Originally Posted by Stuartthomas
my point is that If lenders were unable to charge these rates, the concern would be that they simply wouldn’t lend to those who need it at all, and would force those in need of a short-term loan into the hands of criminals.
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You make it sound like payday lenders are providing some great public service. Nobody needs to borrow money at 1,000% interest and above. That is nothing more than legal loan sharking. It is predatory lending at its worst. You'll never find a payday lender in a decent, middle class neighborhood. You can only find them in poor areas where people are struggling to get by. So rather than helping these people, the payday lenders charge them exorbitant interest rates and trap them in an endless cycle of debt.
Before usury laws were changed, there were no payday lenders, check cashing stores, etc. I don't believe getting rid of them would make people turn to crime. Perhaps it would make them pay a little more attention to how they are spending their limited incomes and they would stop spending more than they have and living in debt as a result.