Delaware is trying to increase the license fee for payday lenders by $1500. The governor thinks this will discourage more stores from opening. In my opinion, that’s pretty unlikely.
I didn’t realize that Delaware has a lot of store fronts. I was always under the impression that Internet Lenders went there b/c of the very liberal tax and corporation laws.
The article also talks about a group that’s offering a product to replace payday loans. Wilmington’s West End Neighborhood House that offers lower-cost short-term loans at around 13%. Personally, I’m a big fan of this. If you want to put payday lenders out of business, don’t use the government to do your dirty work. Offer a better product than they do.
I’m pretty confident these groups will only realize that it’s a lot harder to make money lending money than they think.
You can read the full article at Delaware Online.
