“Less rich”?
June 7, 2009 | Wisconsin, industry, research | Comments (0)This Wisconsin editorial demonstrates that the writers don’t know that a rate cap is a ban. However, they make reasonable arguments and seem to have done some homework:
The industry cites a study by the Federal Reserve of New York which found more bounced checks, more complaints about lenders and more bankruptcy filings in Georgia and North Carolina after they banned payday lending. On the other hand, a study by the University of North Carolina found that the absence of payday lending had no significant effect on the availability of household credit.
Without clear evidence that payday lending is harmful, we wouldn’t want limits so strict that they put the industry out of business in Wisconsin.
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