This is a small step in the direction to protect the working poor, who by the way, are the only people who use these service…..about time they stepped up and did a little protection……
Starting Thursday, the state no longer will allow payday-loan operators to set interest rates as high as 460 percent annually. A 10-year-old law that allowed them to charge above the 36 percent annual rate cap imposed on other lenders, such as banks, will expire.
Miller said that to stay in business, many payday lenders likely will offer auto-title loans, which can generate annual returns of up to 204 percent, according to state law. The Center for Responsible Lending said more than 200 payday stores in Arizona have received auto-title loan licenses in the past two years, as it became more apparent payday licensing would end. Some payday lenders also will continue to offer check-cashing services.
Arizona will become the 16th state to impose an interest-rate cap on payday loans, according to the Center for Responsible Lending in Durham, N.C., which tracks payday-loan operations across the country. At least six other states are looking at imposing restrictions.
Good post!
I do understand how less well off people get into this situation, but SURELY there must be some way out or other out of it of it with care, isn’t there?
That said, it does though prove our point that debt is indeed nothing short of a form of slavery.
I really don’t mean to be rude about your often great nation, but the more I hear about the US and it’s failure to sort out what would be very simple to fix (or is it perhaps a LEGAL anomaly to do with your federal setup and the constitutional situation), the more I am appalled that any civilised country can treat its citizens that way.
As you know, I’m not a fan of welfare except to a limited extent, but nor am I a fan of allowing clearly predatory business to manipulate the poor unfettered, trapping them in the process into the slavery of debt.
Thanx…and do not fret you are thinking nothing about the US that I have already…..you would be surprised at some of the stuff…like Mississippi in its Code of 1972…it is a misdemeanor to father more than 2 kids out of wed lock…..beyond that the new FinReg does have some better consumer protection than before, but it does not go far enough, IMO….
Personally, I think I’d have the fed use the bailout residue to offer a loan to the less than well off equivalent to ONE paycheck at base rate plus 5% JUST ONCE and repayable over 6 months.
The responsible poor would then be out of the clutches of these assholes. Of course, the sharks – er, sorry – um, loan companies wouldn’t like that, I suppose…
Good idea…..you need to hear the names of sopme of these companies….Money Store and Cash Cow and there ads make it sound like free money or close to free….