I’ve written before about U.S. Rep. Marsha Blackburn’s defense of the payday loan shark industry. Here’s more on what H.R. 4018, a bill she’s co-sponsored, would do.
From the Chicago Tribune:
The wonderful Florida law these folks want to protect results in effective annual interest rates of 312 percent. The proposed CFPB rules would put a big dent it that by requiring lenders to make sure borrowers could repay short-term loans in 45 days. It also has a 60-day cooling off period between loans, and would add a 60-day ban to keep any lender from making a loan to a borrower who had taken out three loans in a row. In Florida now, 76 percent of all payday loans are rolled over in two weeks, according to Americans for Financial Reform, and 85 percent of all loans are part of a string of seven or more payday loans, which is how the average $250 payday loan gets to an interest rate of more than 300-percent.
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