Comment of the Day II
May 13, 2010 | Uncategorized | Comments (1)If the Whitehouse amendment allows each state to regulate and determine what credit card rates are best suited for their residents, then it is the same logic that allows the states to regulate and determine what payday loan rates are best suited for their residents. Payday loan companies are already heavily regulated with rate caps in most states. What am I missing?
Comments»
Payday Pundit, you are too focused on Payday. Now if I am Bank of America, that means that that I have 50 different types of loans for 50 different states. I don’t know about you but as as bank I can’t operate effectively this way and will result in higher costs to borrowers due to increased compliance costs for banks. In addition, speaking of Ohio, since there is already a cap of 8% in Ohio, when inflation happens the people of Ohio are going to be really screwed as no bank will be willing to lend to anyone if prime rates hit 7%+ (which thanks to the EU this will definitely happen within the next 15-18 months)