December 10, 2007

NOT IN THE PURITAN NATION:

Time to rein in 21st century loan sharks: Payday lenders prey on people in need (JONATHAN P. BAIRD, December 10. 2007, Concord Monitor)

While it would be easy to think payday lending is some new phenomenon, nothing could be further from the truth. Payday lending is the modern form of usury. Usury and its regulation have been the subject of civil and religious debate for literally thousands of years.

Usury is not a word you hear used very often now. It has a musty, 19th-century quality. Usury can mean the price paid for the use of money. It can also simply mean excessive interest.


It's a dangerous country in which to engage in unChristian behavior.

Posted by Orrin Judd at December 10, 2007 9:33 AM
Comments

OJ, is establishing a price of entry usurious, because that is all these payday lenders (and subprime loan lenders, come to think of it) are trying to do?

How does limiting the ceiling on price of entry further promote the Ownership Society? To own is to necessarily accept risk, you know. Why should anyone accept you into the owners club when they are limited from fully profiting from your entrance into the club?

Posted by: Brad S at December 10, 2007 11:58 AM

Subprime lenders at least loan on real estate. While high, the rates and fees can be ok. The problem is some people can't make the payments from Day 1.

Payday loans are different. The interest and fees consume everything. You cannot ever get ahead from payday loans, no matter how careful you are with the money you get.

Some states even permit back to back payday loans which is just evil.

Posted by: Bob at December 10, 2007 2:28 PM

Limiting their profits won't stop them from lending, just control their greed.

Posted by: oj at December 10, 2007 4:33 PM

And the people utilizing "Payday" lenders are doing so because?
They are irresponsible! They are, financially, untrustworthy. They are, likely, to be soon unemployed!
It would be interesting to learn what % of these "usurious" loans are repaid within the contracted time frame, let alone repaid at all?
What would it take for you to risk your savings on someone with these traits?

Posted by: Mike at December 10, 2007 8:14 PM

If you think they aren't making scads of money off the scam you don't understand unfettered capitalism.

Posted by: oj at December 11, 2007 12:28 AM
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