Payday loan outfits are under attack from do-gooders in government. Usually the fee is about $15 for a $100 two week loan. That quickly works out to 15% interest. That's o.k. as a temporary loan, if it is not repeated 26 times a year, where the rate would be outlandish. So, there is room in the economy for such emergency service.
Left-leaning government observers do not like the concept because they think folks with poor credit should get the same terms as those with good credit. After all, fair is fair.
But folks with bad credit have always needed emergency funds. That has been true going back for many years, in good and bad times. We know why so many in the past went to the extent of patronizing mobsters for funds. Paying enormous interest charges, plus limbs and lives in the event of non-payment.
So when legitimate services charge what do-gooders say is too much, an attempt is made to stop the vile business. And perhaps go back to the good old days.
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