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The banks' lending policies are getting scrutinized by, regulated by, and clamped down on by the CFPB.
I don't need your anecdote about bank managers being your friends. I've been posting about the CFPB and banking for 2 years. I know it intimately, and not through friends who work as managers in branches. I'm speaking from real world and very deep understanding.
The banks aren't the monsters here, nor is it their fault that people turn to payday lenders. And regulating payday lenders out of business is only going to hurt the people who rely on them for cause and as the last resort.
Poor people use payday lenders because they are there. Before there were all these payday lenders they went to pawn shops. At least with a pawn shop they did not end up in the kind of vicious cycle they end up in with payday lenders. Worst case scenario with a pawn shop was the pawn shop kept their item. On balance I think payday lenders do more harm than good.