What’s your point?
June 24, 2009 | Illinois, Uncategorized, regulation | Comments (0)From a column in Chicago Business.com about Illinois reform legislation that died:
Now, I’m not without sympathy for payday lenders. I understand why some, as a matter of libertarian principle, oppose any usury limits. The lenders are entitled to make a buck, and bills like Ms. Hamos’ surely would cut off some poor folks from access to credit.
But not everyone deserves access to credit all the time. Subprime lending to those with subprime finances arguably is the main reason why the nation is caught in the worst downturn since the Depression. If the industry has to clobber many low-income families with killer rates to make up for other borrowers who default, maybe the industry ought to tighten its lending standards.
Has this guy done his research? The industry doesn’t “clobber low-income families.” Payday lending customers are middle class. And the industry has low default rates, much lower than most banks and credit unions.
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