Back in July, Senator Mark Warner [D-VA, @MarkWarner, 202-224-2023] introduced S.1642 - The Protecting Consumers' Access to Credit Act of 2017, which bans states from capping the interest rates charged by payday lenders who serve poor and vulnerable people, so long as the payday lenders partner with a national bank.
The bill is nominally about allowing for innovation in finance products, but it has been widely condemned, drawing opposition from Americans for Financial Reform, the Center for Responsible Lending and the Consumer Federation of America, the NAACP and the Southern Poverty Law Center, who've warned that the bill will "open the floodgates to a wide range of predatory actors to make loans at 300% annual interest or higher."
Dozens of states regulate payday lending through usury caps ― blocking loans with annual interest rates higher than a certain amount, often 36 percent. Payday loans usually take the form of a two-week advance of a few hundred dollars with a “fee” of a few dozen dollars. In 2013, the Pew Charitable Trusts found that a typical payday loan was about $375, with a $55 fee. Since the life of the loan is so short, in just two weeks this “fee” works out to an annual interest rate of over 380 percent. In practice, though, it’s usually much worse than that, since, according to Pew, a typical customer ends up repeatedly rolling over a payday loan, ultimately handing over about $520 in fees to pay off an initial $375 advance.
This Democrat Is About To Give Payday Lenders A Big Boost
[Zach Carter/Huffington Post]
(via Naked Capitalism)
Reason's December issue celebrates the magazine's 50th anniversary with a series of commissioned pieces on the past and future of the magazine's subjects: freedom, markets, property rights, privacy and similar matters: I contributed a short story to the issue called Sole and Despotic Dominion, which takes the form of a support chat between a dishwasher […]
At times this week, wildfires made San Francisco's air the worst in the world, and the city's stores have largely sold out of the N95 filter masks that make the air barely breathable, leading to at least one enterprising Uber driver selling the masks out of his car (at a substantial markup: $5 each, compared […]
Amazon is already known for providing dangerous working conditions, anti-union activities and treating their blue collar workforce like a disposable commodity. Since they’re already screwing folks at work, it must have seemed like a natural progression to screw them at home too. From Politico: Amazon’s plans to expand into Long Island City may cost Mayor […]
Ever wondered what it takes to make the transition from amateur photography to a full career? If you answered “a better camera,” you’re half right. Before you get the equipment, get the know-how to use it with the Hollywood Art Institute Photography Course & Certification. Taught by experienced pros, this course is geared towards shutterbugs […]
Anyone can learn piano, but don’t tell that to the bored kids who had to endure hours of “Chopsticks” and similar drills in their music lessons. Today, there’s a better way. Pianoforall lets you jump right in to discover what makes music fun, leaving you eager to learn more. In a simple but innovative approach, […]
There are two times you never want to just “eyeball” it: Conducting brain surgery and matching shades of paint for your walls. Whether you’re painting or repainting, make sure you’re never just “close enough” to the color you want. Not when the Nix Mini Color Sensor can scan and match any color perfectly. Small enough […]