Oct 24
Interest Rates & Payday Loans
2009 at 8:47 am | posted by Rep. Craig Frank 5 comments
The Salt Lake City Council recently passed a resolution encouraging the Utah State Legislature to “cap” payday loan businesses’ ability to charge high interest rates. Read about the proposal HERE.
What do you think?
5 Responses to “Interest Rates & Payday Loans”
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October 24th, 2009 at 9:08 am
Congress has put a cap of 36% on payday and car title loans for those in the military. I believe others should be given the same protection against usury as military families. Pawnshops and payday lending companies are in the business of exploiting those who have the least to begin with.
October 28th, 2009 at 9:25 am
In 2005, the DesNews did a sample of payday lenders, and found that the median annual interest rate for a $100 short-term loan was 521%. (Range: 365% to 912%).
http://deseretnews.com/dn/view/0,1249,635159502,00.html
http://deseretnews.com/dn/view/0,1249,635158738,00.html
With interest rates like that, should they be capped? There is a deeper problem in a society where such outrageous usury is allowed to thrive–don’t just cap it, discover and solve the underlying problem.
November 9th, 2009 at 11:23 pm
The underlying problem is that people make bad choices, choices which put them in situations in which their best option is to take a high interest loan. They should be free to make that decision for themselves.
November 10th, 2009 at 12:56 am
I support this proposal, But can the state pass such a thing.
Doesn’t this regulation fall under the interstate commerce provision of the constitution? The Supreme court ruled on interest rates for credit cards as being an interstate commerce issue I would think this falls under the same rule would it not?
November 14th, 2009 at 4:54 am
I have no outstanding comment but i support pay day loan.