“President Barack Obama asked Congress on Tuesday to create a new agency to police the fine print on credit card bills and mortgage documents and determine what fees, penalties and interest rates are fair.”
Unlike mortgages and credit cards, I think payday loans are very straight forward. If you have not figured out that rolling over a payday loan more than 3 times is a really bad idea, then payday loans are not your biggest problem.
Now, I believe the payday loan industry should provide complete disclosure. For the most part, I believe it does. For example, it’s common for the promissory note to display:
CUSTOMER NOTE: Payday advances should be used for short term financial needs only, not as a long term financial solution. Customers with credit difficulties should seek credit counseling.
OR
YOU CANNOT BE PROSECUTED IN CRIMINAL COURT TO COLLECT THIS LOAN.
Everyone should read this article in the Associated Press titled “Administration sends Congress consumer legislation.“
