Crazy article of the day
April 23, 2009 | Utah, industry, media coverage, regulation | Comments (1)And it’s from the Salt Lake City Tribune:
Not much separates 1960s Mafia heavies and today’s payday lenders: La Cosa Nostra charged its debtors 250 percent interest. Fifty years later, the check-cashing industry is even more ambitious. They charge up to 500 percent.
But while loan sharks are reviled, modern-day business-suited predatory lenders are treated like legitimate corporate citizens in Utah. This week, the Salt Lake City Council feebly — and much too late — attempted to curb the clustering of usury shops along city blocks. They say that’s all they can do.
I’m almost speechless. Does this reporter have any perspective? Mob loan sharks will be back in business if payday lending is banned. I’d love to introduce this reporter to a real loan shark and a payday lender and then ask who she’d rather borrow money from.
Comments»
The ‘Mafia Loan Shark’ vs. ‘Payday Lender’ argument is so overdramatic and incredibly inaccurate. ‘Loan sharks’ do not have any disclosure rules, rate caps, or requirements. They also have lower risk of default than payday lenders. I think anyone would rather have their paycheck garnished than have an arm broken.