Editorial writers don’t get it
December 2, 2008 | Missouri, Springfield News Leader, industry, media coverage, regulation, states | Comments (1)They simply don’t understand that a 36% rate cap is a ban. From the Springfield (MO) News Leader:
It’s time for Missouri legislators to soften the political posturing — and proselytizing — and look to what other states have done.
According to studies, others states–Oregon, North Carolina–have hurt their citizens by reducing their financial options.
Comments»
Don’t these writers realize that putting the 36% cap for military people now means that no active military personnel can take a payday loan. No one will lend to them.
Wherever 36% caps have been put into place, loans have ceased. Doesn’t anyone realize that $100 at 36% is $3 per month of interest? You cannot make a profit on that. Didn’t some credit union come up with $9.90 per $100 (for two weeks) was only enough to break even????
The writers who criticize the industry are ignorant. It is really frustrating that these people are incorrectly informing the public. Are they in the banks/credit unions pockets? It seems that payday lenders are bad, but banks and credit unions are good……how is that? Doesn’t anyone realize that the banks and credit unions are lobbying to eliminate payday lenders so that they can collect more in fees (and at higher rates)??????