EconomicPolicy Journal relates the ZeroHedge report that the Dodd Frank Financial Regulation Legislation in Title XII: IMPROVING ACCESS TO MAINSTREAM FINANCIAL INSTITUTIONS, section 1205, contains a provision titled “Low-cost alternatives to payday loans”.
This authorizes the US Government to establish a small dollar loan program to compete with payday loan corporations such as EZCORP, and Cash America, Chart of EZPW and CSH.
I consider payday loans to be usurious and addictive and as such have never used one. The legislation extends the current moral hazard seen in Freddie Mac and Fannie Mae, GSE lending; and presents the moral risk of the Government as seignior to the public at large where the Government becomes provider of credit and money for daily transactions
Disclosure: I am invested in gold coins