Payday loan outfits are under attack from do-gooders in government. Usually their fee is about $15 for a $100 two-week loan. That works out to 15% interest. That’s o.k. as a temporary loan, if it is not repeated twenty six times a year, when the rate would become outlandish. Therefore, 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 financial ratings should get the same terms as those with credit that is top-notch. After all, fair is fair.
But folks with bad credit have always needed emergency funds. That has been true going back for years, in good and bad times. We know why so many in the past patronized mobsters for funds. Paying, in that process, enormous interest charges plus limbs and lives. as the penalty for 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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