The ghost of Jack Kevorkian for President's Physician: 2016
Here is an interesting article with a counter point to my views on such usurious businesses:
Shurtleff defends payday loan rates
By Lee Davidson
Deseret Morning News
Published: Wednesday, Jan. 30, 2008 12:22 a.m. MST
Utah Attorney General Mark Shurtleff said Tuesday that banning "payday loans" could hurt the poor more than it would help them and could force more of them into bankruptcies or repossessions.
But debating against that was University of Utah law professor Christopher Peterson, an expert on predatory lending. He said payday loans are essentially legalized loan sharking that can bury the unwary into deep debt. He said societies for millennia have banned the sort of high interest rates that payday lenders now charge.
Shurtleff said, "I've done a lot of research in this area. And I truly believe in my heart of hearts that the people's good is best served by competition" and allowing payday loans as an option besides such things as bouncing checks or pawning goods.
He said a recent study by staff of the Federal Reserve Bank of New York also concluded that after Georgia and North Carolina banned such loans, former users migrated to costlier alternatives, including bouncing checks (and paying expensive bank fees to cover them), or filing for bankruptcy.
Peterson, who has written books examining predatory lending practices, said that study was flawed and did not control for many variables that could have increased bankruptcies and bounced checks. He said payday loans do hurt the poor.
But since then, the median cap among states is 400 percent, and many states, including Utah, have no caps — which led to the rise of payday loans. Nationally, Peterson said, more payday lenders exist now than McDonalds, Burger King, J.C. Penneys and Target stores combined.
Deseret News | Shurtleff defends payday loan rates
Here's the solution.
Withdraw the restrictions on use of force to collect loans.
Back when people had their kneecaps busted, they stayed away from loan sharks, didn't they?
Here is the real deal. As sinister as these business types are, the reason they charge what they do is because the people taking out these type of loans are of the highest risk class that can possibly exist. They deal largely with druggies, junkies, and derelicts. If a lower rate could be extended and a profit still be easily turned, sign me up for the new business venture.
Sad part is, this guy is gonna win and probably get paid... well his lawyer will get paid, he however will get something out of it.
These places exist, and if you're dumb enough to use one, and get yourself screwed over that's your problem.
The wife an I went and bout some beds for the kids this past weekend, they wanted us to sign up for thier "No interest payment plan". Rate? 26.8%.
What's the difference between that furniture company and these loan sharks?
⚧ C.T.L.W. You figure it out
My Endo doc went over my blood work. "I see your estrogen level is now at 315, do you feel like you have too much Estrogen now?"
I told her "... N... N.. No..." and started crying.
I was discovering that life just simply isn't fair and bask in the unsung glory of knowing that each obstacle overcome along the way only adds to the satisfaction in the end. Nothing great, after all, was ever accomplished by anyone sulking in his or her misery.
I live in Missouri and heard about a similar case in Arkansas a number of years ago. Apparently in AR they have a state law capping interest rates on loans to a "reasonable" amount. Its been a long time ago and I didnt pay a heck of alot of attention but I believe the person sueing won the case due to "unreasonable" interest.