Mahant

How Will Payday Lenders Be Affected by New Bill in Congress?

It is so disgusting to find that a Democratic Senator would be initiating a Bill fixing 36% interest on short term loans to most vulnerable section of our society. It is even more disgusting to know that while billions of dollars are being doled out of our tax money to save worst run financial institutions and their vangaurds who are making millions in bonus and not propose a very simple Credit Guarantee Corporation (probably with a billion Dollar initial funding from Federal Govt.) to guarantee these loans and fix a reasonable ceiling of 15% APR on these loans.

As to reporting under TIL why loans less than 10 months not be reported and an amendment to this Law be brought by Senator.

He has looked at this from the viewpoint of a Bankers/Lenders lobby not from the viewpoint of marginal borrowers/his sense of social justice to indigent.

Hope people in Obama administration should look into these loans as a form of microlending with establishment of a Credit Guarrantee Corporation to mitigate their subprime status. They should also look into the possibility of resurrecting Old Usuary Laws that were in existence into most of the States to reduce possibility of Criminal elements being so present in this area as of now.