We don’t wish you luck
May 27, 2010 | Virginia, industry, regulation | Comments (1)The Staunton, VA City Council has big ambitions:
Council will discuss adopting a resolution today to ask the state to impose an interest rate cap of 36 percent, calculated as an effective annual percentage rate, that includes fees and charges that payday lenders require.
————————————————–
Jamie Fulmer, director of public affairs for Advance America, one of the larger payday lenders, said the charges by critics of the industry are based on fundamental misunderstandings of the services they provide. He said claims, such as there are viable alternatives to borrow money in a pinch, are not true, adding using a payday lender is often less expensive than having to bounce a check.
Comments»
I believe that the States which cap APR%’s and fees at 36% should put THEIR money where their mouth is! If 36% is actually enough to run a business on, then the State should be required to open up “X” amount of State funded short-term loan centers which operate within of their own restrictive legislation. Then we’ll see how impossible it is to lend out $100 for a mere $1.38 and keep the doors open!