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)
Amazon doubled its profits in 2018, to $11.2 billion; the company will receive a $129 million tax rebate for the year.
The Right to Repair movement got state legislatures to consider more than a dozen Right to Repair bills last year, and have made great strides in the EU and elsewhere, but for every two steps forward they manage, they're forced a step or two back by giant corporate lobbyists, led by Apple, who want to […]
The LA Times Guild has been negotiating a new contract with the newspaper, but has hit a wall thanks to an unprecedented demand from the paper's owners: they want writers to sign away the rights to nonfiction books, novels, movies and other works they create separate from their reporting for the paper. The newspaper is […]
High-def cameras are available to anyone and for much less than they were just a decade ago. Even the phones in our pockets can be used to shoot and edit short films. It’s never been easier to be a filmmaker, providing you have the technique. Enter the Film & Cinematography Mastery Bundle, an online boot […]
Breaking into the indie video game market may be easier than you think. It all starts with an idea, and then it’s a matter of finding the right development platform to bring it to life. No matter what that platform is, it’s a good bet that it’s covered in the 2019 Game Dev & Design […]
Learning a new language like Spanish doesn’t have to be hard. Either you can buy a ticket to a Spanish-speaking country, immerse yourself in the culture and pick it up intuitively – or you can do it from the comfort of the chair you’re in right now by logging on to Rocket Spanish. There are […]