|
U.S. PIRG Consumer Blog
« Bailed-out banks under investigation for fee-gouging |
Main
| New study on college students and credit card debt: it's getting worse »
April 13, 2009
NY Times condemns payday lending bill in Congress as "ersatz reform"
Today's New York Times editorial 391 Percent Payday Loan explains the problem with legislation proposed by U.S. Rep. Luis Gutierrez (D-IL), the new chair of an important Congressional subcommittee: Payday loans — advances that are to be repaid on payday — are so burdensome and so pernicious that in 2006 Congress effectively banned them for military families. Given all the problems workers face right now, Congress should extend this protection to everybody. Unfortunately, some members are pushing an ersatz reform that would allow payday operators to charge what amounts to an annual percentage rate of 391 percent. The editorial goes on to attack the growing bank profit center --usurious overdraft loans. Our previous blog on the hearing on HR 1214, what might better be called the Payday Lender Protection Act. Our previous blog on hearing on bank overdraft loans.
Posted by Ed Mierzwinski at April 13, 2009 06:39 AM
Post a comment
|
