General Discussion
In reply to the discussion: Lending money to someone is an aggressive, dangerous act [View all]Yo_Mama
(8,303 posts)But then why are people taking out payday loans? Because they are in trouble and think it is the best/cheapest way? It may be!
I don't like the payday loan industry, but the reality is that often they DON'T get their money back, so high interest rates are needed if people need payday loans. You can't regulate the interest rates very low without putting all payday lenders out of business, and if you did, you would get black market lenders with enforcers, which is the way it used to work. Vinnie the loan payment collector would be worse.
The solution, long ago, for which I advocated was that anyone could get small loans from their SS balance, and pay them back, with interest and a transaction fee (for bookkeeping) through withholding.
Gee, never met a politician who wants to hear about it.