...what better time to really stick it to poor folks who use credit to make ends meet? From the Statesman:
Wall Street is taking a big interest in the Texas market for small loans.
A bill making its way through the state Legislature would allow lenders to sharply increase the fees that they charge for so-called payday loans — short-term, high-fee loans to consumers. It also would allow lenders to escape increasingly tough federal regulation of their loans...
The bill would allow payday lenders to charge $15 per $100 borrowed. For a $400 loan, that's $60. Most loans are made for a two-week period, which is equivalent to an annual interest rate of 391 percent.
Ye gads! And to think that I was complaining about the 14 percent APR on my Visa card.
This is usury, plain and simple. Ask your elected representatives to just say no to House Bill 846 by Rep. Dan "Greedy McGreederson" Flynn, R-Van. A sample letter is posted below the fold for your convenience.
Dear XXX,
I'm writing to express my opposition to HB 846, "An act relating to deferred presentment transactions." According to the Austin American Statesman ("Payday lenders banking on new state law," April 22, 2005), HB 846 would:
- Allow lenders to sharply increase the fees that they charge for payday loans ("The bill would allow payday lenders to charge $15 per $100 borrowed. For a $400 loan, that's $60. Most loans are made for a two-week period, which is equivalent to an annual interest rate of 391 percent.")
- Allow lenders to escape increasingly tough federal regulation of their loans...
Low-income Texans already face substantial challenges in making ends meet. Allowing greedy Wall Street bankers to prey on Texas families when they are most vulnerable is reprehensible. I urge you to join me in speaking out against Mr. Flynn's outrageous proposal.
Sincerely,
XXX
Posted by sarah at April 22, 2005 12:54 PM | TrackBack