Dear Congress: get rid of the rent-a-bank ruse

Dear Congress: get rid of the rent-a-bank ruse

The present push by payday lenders to try to outflank state legislation is but one explanation Congress has to work on a unique proposition that will cap rates of interest at 36%.

Contemporary payday lenders — providing the high-interest credit that happens to be called today’s loan sharking and therefore were only available in the 1990s — have found techniques to circumvent state guidelines that prohibit or restrict exorbitant interest levels, sometimes rates outstripping 500%. Read more…