05-24-2011, 11:24 AM
Many of these kinds of businesses exist only because of little or no regulation as to permissible interest rates. Re introduction and enforcement of the old fashioned usury laws would go a long way to mitigating these companies predatory practices.
The other side of the coin is that there would be far fewer companies willing to loan money if these laws were re enacted.
Bear in mind that so called 'legitimate' lenders such as banks charge outrageous interest on credit card balances to clients who have good or fair credit. Gouging is not restricted to the poor. Ideally the old adage 'never a lender nor a borrower be' is a maxim to live by. Easy credit has made paupers of many, as the housing bubble attests.
It would be good to require mandatory high school classes about credit and the use of debt as a pre requisite for graduation.
The other side of the coin is that there would be far fewer companies willing to loan money if these laws were re enacted.
Bear in mind that so called 'legitimate' lenders such as banks charge outrageous interest on credit card balances to clients who have good or fair credit. Gouging is not restricted to the poor. Ideally the old adage 'never a lender nor a borrower be' is a maxim to live by. Easy credit has made paupers of many, as the housing bubble attests.
It would be good to require mandatory high school classes about credit and the use of debt as a pre requisite for graduation.