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Siding With 'Loan Sharks' Over Consumers, Trump CFPB Moves to Gut Payday Lender Regulations


#43

The Italian Mafia and its American version PALE in comparison to the mafia that is the USA Empire.


#44

Interesting that History.com leaves out Myer Lansky whowas the Mob money man and was neither Italian nor Catholic, but Jewish. History goes to the winners, and those who write it.


#45

Predator capitalism and we are the prey.


#46

So the solution to payday lenders is for the taxpayer to subsidize risky loans at below-market rates? Why does that make sense? Either one of two things would happen:

  1. The public bank makes risky loans at below-market rates and the taxpayer eats the losses. Awful scenario.
  2. The public bank refuses to make loans that a payday lender would because it is incapable of charging higher rates. People who needed the money can no longer get or have to use true loan sharks, but in this case a black market illegal variety that is far more dangerous. Awful scenario.

You can’t eliminate an unfortunate situation, the unfortunate situation being that some people with limited means need liquidity. But by outlawing market-based avenues for people to access liquidity, you only make the situation worse.


#47

And now another billionaire, who made his fortune telling everyone that “small” is actually “tall” (so it costs more), wants to be the alpha wolf (with apologies to wolves). Plutocracy for all!


#48

No! Not human! I offer this alternative: “a monstrous tornado at the water treatment facility,” or simply, “shitstorm” (homage to Chris Rock).


#49

Agree somewhat in thinking credit cards are dangerous. When first married it was still hard to qualify for any card and some were known as impossible to get for young people. The one we did get(JCPenney- lol) had a low limit. That forced us and others to figure out how to save up the money to buy what we needed ( and wanted). So we started out being, forced, if you will, to learn to manage money.
Now my own kids were bombarded since their first day after high school graduation for practically unlimited credit cards. If they had taken them up they might never have learned for themselves how to manage their own meager resources well. Of course we taught them budgeting and saving and compounding but being forced to do it to your own life is a much different thing. They both have friends who were many thousands in debt before they graduated college, not from college costs but from mere buying…
I think credit cards need to be strictly regulated with fairly modest limits. Enough to replace your basic featured washer or water heater or repair your car if you need it for work. That said they are super convenient for traveling. And debit cards without a credit function are truly a great thing!!


#50

Are you seriously trying to DEFEND the payday loan shark machine??? Holy shit pal…


#51

You have unnecessarily limited the options. I would prefer to alleviate the “unfortunate scenario” you deem inevitable by providing a universal basic income so fewer people would be compelled to offer their throats to the wolves. Usury is immoral, legal or otherwise. Our government should not support it.


#52

Dirty Money on Netflix has a good episode on payday lenders and just how sleazy they are.


#53

Jeese, who would have seen that coming. If there is a decision to be made round here anymore the choice will always favor the con.


#54

The concept of a higher risk lender isn’t the problem that the rapacious rates and penalties represent. When a 100$ loan can balloon into thousands of dollars in short order something is seriously wrong. Sure the creation of a loan is an investment and risky investments are only made because the reward is greater But, this isn’t what is going on with the poorly regulated short credit industry, for we can put bank credit cards in that mix.


#55

I retired to the “south”. Come down here if you want to see sleazy “payday” lenders, pal. The people down here are either uneducated or poorly educated and these motherfuckers swoop down on these people like fucking hawks.


#56

My first marriage was to a girl who had no concept of how to handle money. After 7 years, she got the inch, and here I am not talking about money, walked on me, walked on the next guy after a couple more years, married another guy she worked with, used his inheritance from his folks to buy a big house for a new son, and over the course of the next decade, she ran up credit card debt, supposedly unbeknownst to him, of a couple hundred thousand dollars.

Needless to say, they’re divorced now.

My parents taught my brother and I to buy what you need when you have the money. That lesson served us both well.


#57

Looks like that woman was a skilled con artist. I wonder why the third husband was not aware of her spending habits.
Our parents lived through the lean years, mine were from immigrant families and frugality was the normal state. We all learned the importance of not going into debt. If you do not have the money, save up until you do. Yes I have an AMEX for travel expense but I do not use it unless my balance at the credit union can cover what I want. I taught my son to never pay interest by always having your expenses covered and pay off balance on time.


#58

Yes. Though they seem awful, I’m in support of the existence of pay day lenders. The alternative is far worse.


#59

I get that. My late parents bought a house in the late 1940s and that was their line of credit. I understand what you are saying about being responsible, but the fact still exists is that it is part of a business of a corrupt business. They even sent credit card to college students who ended up using them and putting their parents in debt.


#60

Pay day loans and credit cards are not “good” for poor people- they only put them at more risk. Better for them to use social services , family, other organizations etc. The debt industry is corrupt.


#61

I never heard of a credit card debt of a couple of hundred thousand dollars! Credit cards are a bad idea.


#62

The article literally reminds you that family and social services can’t always be there for you. Stop being so naive.

Even a universal basic income platform can’t prevent certain people from becoming temporarily strapped for cash and needing liquidity.

No one here has come up with a solution that makes payday lenders obsolete. You’re only making poor people more vulnerable by eliminating options.