Spokeswoman Kathleen Day for the Center for Responsible Lending says “If you can’t make money on that (36%), you shouldn’t be in business.”
It’s like saying you can’t charge more than 1/30 of a month’s rent to get a one-night hotel room. If a studio apartment is $1000 per month, you can only charge $33 to rent a room for one night.
Consumer groups should spend less time acting as parents to voting adults and more time educating them. Better yet, why don’t they lend people $300 when they’re in a bind. They would rather just put people out of business.
Luis Guitierrez is currently sponsoring a law that would regulate payday loans at the federal level. We wrote about this a few weeks ago in a post titled: National Payday Perfect Storm Brewing. Unfortunately, neither side wants it; which means the industry will get to operate for a few more years until every state bans them.
You can read more in QC Politics.
