Financial regulators and Antifa leaders might seem like strange bedfellows, but it seems the creators of the Payday lending regulations at the Consumer Financial Protection Bureau (CFPB) had a prominent Antifa member's advice in mind while designing these now defunct regulations.
But do consumers really need protection from these lenders? Or perhaps do they sometimes benefit from having this resource, albeit at interest rates that should discourage anyone of making a lifelong habit of obtaining these loans?
The truth is consumers use payday loans to get through a financial pinch, typically for a relatively short period of time. The vast majority who use payday loans understand the product and responsibly use it to make informed choices about what is best for their finances.
Original Article via Anna Bahney, CNN Money May 22, 2018 Can you cover an unexpected $400 expense? Four in ten Americans can’t, according to a new report from the Federal Reserve Board. Those who don’t have the cash on hand say they’d have to cover it by borrowing or selling something. The bright side? That’s
Original Article via Tim Worstall, Washington Examiner May 28, 2019 Rep. Alexandria Ocsaio-Cortez, D-N.Y., and 2020 candidate Sen. Bernie Sanders, I-Vt., have apparently decided to try to ban credit cards. Sure, that’s not quite what Ocasio-Cortez and Sanders actually say (they just want to stop the swindlers profiting from excessive interest charges), but that’s the
Original Article via Gazette Staff, Texarkana Gazette May 20, 2019 U.S. Sen. Bernie Sanders, I-Vt., and U.S. Rep Alexandria Ocasio-Cortez, D-N.Y., have an idea they think would do the public a lot of good. And it looks OK on paper. But the reality doesn’t measure up. Their idea is to put a maximum interest rate
Original Article via Thomas P. Vartanian, The Hill May 19, 2019 Last week, Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez(D-N.Y.) introduced the Loan Shark Prevention Act amid a litany of references to executive compensation, payday lenders and credit card “rip offs.” They even invoked the Bible’s admonitions against usury. The bill would create a nationwide 15-percent annual
Let’s not hinder consumers’ access to credit
The Hill – 2/3/2020 (reprinted) By Bill Himper, Opinion Contributor Click here to view the full article Perhaps coincidentally an organization not wholly unfamiliar with less than reputable financial institutions, the Center for Responsible Lending, released a poll that indicated a bipartisan majority of American consumers supported a 36 percent rate cap on pay day and installment loans. Let […]Read More >
Has Ohio’s law banished unscrupulous payday lending? Kind of.
Cincinnati Enquirer – 1/2/2020 (reprinted) By Jessie Balmert Click here to view the full article COLUMBUS – Fighting unscrupulous payday lenders has been the Ohio politics version of whack-a-mole for years. Voters passed restrictions in 2008, but the industry circumvented them. Ohio lawmakers tried to rein in astronomical interest rates and businesses battled back. The quarrel even ensnared […]Read More >
Restricting short-term loans in Virginia will hurt consumers
Daily Torch – 2/3/2020 (reprinted) By Rick Manning Click here to view the full article The Virginia legislature is rushing to pass a bill that would have disastrous consequences for Old Dominion residents. In the coming weeks, a law that would cap at 36 percent the interest rate on short-term loans up to $2,500 and […]Read More >
How each US state is shaping the personal finance IQ of its students
CNBC – 2/5/2020 (reprinted) By Eric Rosenbaum Click here to view the full article KEY POINTS High school students go on to make better financial decisions in states that require personal finance coursework. That includes how to pay for college, taking out loans and loan repayment, avoiding payday lenders and credit card debt. Five states […]Read More >
Congressional Leaders Want to Deny Access to Cash for Struggling Americans
Independent Women’s Forum – 2/5/2020 (reprinted) By Patrice Lee Onwuka Click here to view the full article If you had a $400 emergency like car damage or sudden medical bill, could you afford to pay it? Unfortunately, 40 percent of Americans (and half of military families) don’t have enough saved to cover such a bill. […]Read More >
If you hate payday loans, come up with a better system
Tim Worstall, a senior fellow at the Adam Smith Institute, discusses the dangers of eliminating short-term loans without a viable alternative.Read More >
AOC and Sanders’ Credit Card Interest Rate Cap Would Be Disastrous
Original Article via Diego Zuluaga, CNN Business May 17, 2019 Back in the early 1900s, Progressives helped drive loan sharks out of business by lobbying to lift state usury caps. Those caps had barred lenders from charging interest above 6% to 10% a year, forcing low-income Americans to seek credit in the illegal market. Now, Representative Alexandria Ocasio-Cortez […]Read More >
Original Article via Arkansas Democrat Gazette, Washington Post May 19, 2019 In 1978, the Supreme Court essentially gutted all state usury laws, freeing interest rates and sparking a credit card boom. Around that time, 38 percent of U.S. households had a credit card; as of 2014, 71 percent did. Total revolving debt rose from $48 […]Read More >
The Unintended Consequences of Interest Rate Caps
Original Article via Thomas P. Vartanian, The Hill May 19, 2019 Last week, Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez(D-N.Y.) introduced the Loan Shark Prevention Act amid a litany of references to executive compensation, payday lenders and credit card “rip offs.” They even invoked the Bible’s admonitions against usury. The bill would create a nationwide 15-percent annual […]Read More >
Loan Sharks? Interest rate cap would hurt those it’s designed to help
Original Article via Gazette Staff, Texarkana Gazette May 20, 2019 U.S. Sen. Bernie Sanders, I-Vt., and U.S. Rep Alexandria Ocasio-Cortez, D-N.Y., have an idea they think would do the public a lot of good. And it looks OK on paper. But the reality doesn’t measure up. Their idea is to put a maximum interest rate […]Read More >