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Kentucky trouble

December 9, 2009 | Kentucky, industry | Comments (0)

The Louisville Courier News doesn’t get it.  a 36% rate cap is a ban:

Pay lenders do provide a service to people hard up for cash in the short term, and lenders willing to extend credit to risky borrowers ought to be able to realize a fair profit for the risk.That said, a 36 percent interest rate cap, although high, is probably fair. But it’s also as high as it should go. That rate, after all, doesn’t seem to have bankrupted the payday lenders who specialize in lending to Kentucky’s military personnel.

That said, a 36 percent interest rate cap, although high, is probably fair. But it’s also as high as it should go. That rate, after all, doesn’t seem to have bankrupted the payday lenders who specialize in lending to Kentucky’s military personnel.

What are they talking about?  Who makes 36% loans?

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