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)
Brooks Brothers is the latest casualty of the Covid pandemic, filing for bankruptcy protection in New York today. The upscale clothiers, one of the last to make garments in the U.S., has been in business for 200 years. The closely held company, which is owned by Italian businessman Claudio Del Vecchio, filed for bankruptcy protection […]
I’m looking forward to interviewing Yuko Kaifu, president of JAPAN HOUSE Los Angeles, for a live streaming event on July 17 about virtual meetings and how the rest of the world can learn from Japanese-style business culture. It’s free and open to all, but you need to reserve a seat online in advance. Join us […]
On Thursday, Tesla denied media reports that it fired employees who chose to stay at home during the coronavirus pandemic, rather than expose themselves to possible infection at Elon Musk’s California factory.
It’s almost shocking to say…but there’s actually an incredible amount of manhood wrapped up in how well you cook a steak. Of course, no one would argue your grilling abilities are THAT important. Or that how well you sear a prime slab of beef should have any bearing on your social standing or feeling of […]
The notion of two people sleeping in the same bed always inspires romantic visions of love and intimacy. However, most quickly realize that the romance of sleeping together is often quickly replaced by the realities of the act. One partner snores. The other talks in their sleep. One grinds their teeth. The other hogs the […]
Add Internet of Things to the shortlist of those actually benefiting from the effects of the COVID-19 pandemic. You might not realize it, but the organizing principle that is bringing more automation to the world is actually proving to be a major asset as human beings are forced to stay home and away from the […]