Predatory Lending Gets Dealt a Blow

One of the things that gets me madder than it ought to is the Predatory Lending industry.

Aside from payday lenders at every damn corner, here in the DC area we have Cashpoint (I won’t dignify them with a link). You give them your car title and they give you cash. One of their current commercials has a toothy 20-something saying that the clothes sale starts today and she has to be the first in line. “I just went to Cashpoint to get the cash I need”.

It makes me angry. It’s irresponsible.

Happy to see that a battle line has been drawn in Ohio of all places. From the Columbus Dispatch:

The Ohio Senate approved tough new regulations on Ohio’s payday lenders today, bringing the state very close to ending the payday industry as it currently exists.

House Bill 545 would slash the current interest rates charged by payday lenders to 28 percent, down from 391 percent, prohibit loans terms of less than 31 days, and limit borrowers to four loans per year.

The article goes on to say that it would put the 1600 “stores” in Ohio out of business and put 6000 people out of work. Not that I cheer for people to be unemployed, but maybe their lives would be a lot better if they weren’t making money off of other people’s poverty.

Keep it going Ohio. I hope to see more states follow suit.

DispatchPolitics : Senate approves tough payday-lending bill Columbus Dispatch Politics via Consumerist

[photo: Umpqua]
Advertisements

2 Responses to Predatory Lending Gets Dealt a Blow

  1. Tom M says:

    Why does this remind me of 20-somethings borrowing $300,000 to buy a shiny new four bedroom, four bath, four-car garage home on $30,000 annual income ….

    “Everything’s free in America … for a small fee in America”

    T.

  2. […] a previous post I had talked about an Ohio effort to cap interest rates on loans. This would cripple the insidious […]

%d bloggers like this: