Dear Congress: get rid of the rent-a-bank ruse

Dear Congress: get rid of the rent-a-bank ruse

The present push by payday lenders in an attempt to outflank state regulations is but one reason Congress has to work on a unique proposition that will cap rates of interest at 36%.

Contemporary payday lenders — offering the high-interest credit that happens to be called today’s loan sharking and that were only available in the 1990s — have found methods to circumvent state rules that prohibit or restrict exorbitant interest levels, sometimes rates outstripping 500%. Continue reading “Dear Congress: get rid of the rent-a-bank ruse”