“Scheme to rip off consumers”
March 26, 2009 | federal legislation, industry, positive media coverage, regulation | Comments (1)At bloggernews.net, Larry Meyers has some unkind things to say about Senator Durbin’s 36% rate cap bill:
Sen. Durbin claims this is “good for the consumer”, but he ignores the litany of non-partisan, non-biased studies proving that consumers fare worse when such credit is restricted, as has happened in numerous states recently. He also ignores that fact that almost 100,000 people will be put out of work! Think about that. Here we are in a recession, and Durbin is deliberately proposing to put one hundred thousand people on the unemployment line. SHAME ON YOU, Senator.
Yes, the Durbin bill will force consumers to bounce more checks while bounced check fees are not covered by the cap. Nice if you’re a bank. Crummy if you’re a consumer.
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Why are the Truth in Lending requirements different from one financial institution to another? It’s because they are subject to different regulations and regulators, depending the business.
This is no excuse for the resulting inequality between competing products. Some banks are offering payday loans and enjoy minimal regulatory oversight of that part of their business. The government was never mandated to decide what businesses should have a competitive advantage and which ones should be subject to comparatively ridiculous overregulation.