Faxless payday loan lenders are on the offensive, making voluntary consumer protections.
But they aren’t enough. Quick payday advance lenders are predatory businesses, taking advantage of and making worse many people’s financial insecurity, and we wish that legislators had not allowed them to do business in the state.
Last month, payday lenders said they would allow some borrowers more time to repay loans and end ads that promote loans for frivolous purposes, such as vacations.
Those are shallow attempts at protections.
Bad credit cash loan lenders offer short-term loans that consumers repay with their next paycheck, but those unable to pay end up with fees that amount to more than 300 percent interest on an annual basis.
Oregon approved an interest cap of 36 percent for payday lenders, and Congress imposed the same interest rate on military payday loans.
But even 36 percent interest is a tough rate for people who live from paycheck to paycheck.
No, they shouldn’t be living like that. But the reality is that people often find themselves in that sort of position.
And we shouldn’t allow some to profit so disproportionately on someone else’s misery.