Cutting consumer options
September 25, 2009 | Wisconsin, industry | Comments (0)The Leader Telegram (WI) has a great guest piece today:
Hintz’s proposed interest-rate cap would eliminate financial options valued by thousands of Wisconsin families, while doing nothing to address the state’s real problems of unemployment and economic recession.
The behind-the-scenes activist group pushing for the ban, a North Carolina-based outfit called the Center for Responsible Lending, publishes hysteric reports about the dangers of payday loans – but these reports are written by the activists themselves, not by impartial academics. They routinely contradict themselves – one recent CRL report says payday borrowers paid an average of 16 percent in interest on their loans, their Web site says the typical borrower pays 166 percent, and now their spokespeople are telling Wisconsin reporters that payday loans have an interest rate of 400 percent. Which is it?
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