Congress should cap interest on payday advances

Congress should cap interest on payday advances

Individuals residing in states with limitations on small-dollar loans will likely not suffer. Rather, they’re not going to be exploited and taken advantageous asset of, and they’re going to handle while they do in places such as for instance ny, where such loans had been never ever permitted.

Patrick Rosenstiel’s recent Community Voices essay reported that interest-rate cap policies would develop a less diverse, less economy that is inclusive. He shows that “consumers who consider small-dollar loan providers for high-interest loans are making well-informed selections for their individual economic well-being.” I really couldn’t disagree more, predicated on my several years of working together with Minnesotans caught in predatory and usurious pay day loans. A nonprofit that refinances payday and predatory installment loans for Minnesotans caught in what’s known as the payday loan debt trap, my perspective is, from experience, quite different from that of Rosenstiel as the director of Exodus Lending. […]