Baltimore Sun Payday loan traps

[Anonymous]

http://www.baltimoresun.com/business/investing/bal-bz.ambrose12aug12,0,1999763.column

[Anonymous]

I just received the same type of loan to cover 5 NSF fees that were going to hit my bank account. My bank laughed at me when I asked if they offered the product. I went down the street and took out a 400.00 loan that covered almost $130.00 in fees. I then paid the loan the following week. This service saved me over $100.00.  We should be talking about what these banks charge for NSF fees instead of a service that is needed to bridge the gap. I asked the bank why they don't offer the product and they stated because of the fees associated with the loans. I asked the owned of the store about the fees; he stated that 10% of his business take the money and run.

Is not this country built on a idea of supply and demand and fee market? 

[Anonymous]

Free markets only work when there's a level playing field, but the lending industry has persuaded Congress to let them run roughshod over the consumer.

The only reason the banks and payday loan outfits (which are financed by the largest banks) aren't in jail as loan sharks is because of the death of usury laws in 1978.

MARQUETTE NAT. BANK v. FIRST OF OMAHA CORP., 439 U.S. 299 (1978)

http://laws.findlaw.com/us/439/299.html

Reintroduction of usury laws, or a federal usury law tied to either inflation or prime, would solve this and a myriad of problems. But don't hold your breath.

Message Edited by Noah_Bodie on 08-14-2007 12:28 AM