I am reading more and more about the increased scrutiny on the payday lending industry. Last year a law went into effect that effectively capped the interest rate on loans to military personnel at 36%. Barack Obama has promised to expand this to cap interest rates on all payday loans and "empower more Americans in the fight against predatory lending". A recent article in the Wall Street Journal highlights some particularly disturbing practices by some payday lenders to tap into the Social Security benefits from the elderly and disabled. There has also been increasing pressure at the state level to restrict or prohibit payday lending.
I'm not sure what this means for the small loan industry but I think smart business people see problems as opportunities. So while this may be disconcerting for some, others may see this as an opportune time to adjust the direction of their lending to
Posts
No comments:
Post a Comment