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Yea, we knew this

November 4, 2009 | federal legislation, industry | Comments (0)

Politico, an inside-the- Beltway newspaper, has a big story today: “Dems Seek Limits on Payday Loans.”    The always erudite CFSA spokesperson Steven Schlein was quoted in the story making a simple point:

“An interest rate cap is a ban on the industry. We can’t operate under an interest rate cap,” said Steven Schlein, a CFSA spokesman, noting that the industry doesn’t lend to military personnel anymore. “A 36 percent rate cap takes our fee, which is about $15 on a $100 loan, to $1.38. We can’t make it for 13 dollars less.”

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