Commentary

Editorial: Military and non-military alike deserve protection from predatory loans

Predatory loansIn case you missed it over the weekend, the New York Times ran a thoroughly logical editorial that rightfully called for federal regulation to crack down on the scam artists who sell payday loans and other similar debt traps in numerous states across the country.

As the editorial rightfully notes, it’s all well and good to propose and enact laws like the “Military Lending Act,” which seeks to prevent our military personnel from getting caught up in these rip-offs, but the same logic obviously applies to other vulnerable consumers as well:

“Poor and working-class people across the country are being driven into poverty and default by deceptively packaged, usuriously priced loans. The obvious solution is a national standard for consumer lending. Both the House and Senate have bills pending that would adopt the 36 percent standard for all consumer transactions, including those involving payday loans, mortgages, car loans, credit cards, overdraft loans and so on.”

And while North Carolina has done a better job than many states in protecting its citizenry from the scammers, there’s plenty that comprehensive federal regulation which sets a ceiling on rates would do to benefit us — not the least of which is the way it could cut back on the flood of money spent by the loan industry on buying political influence and corrupting our politics.

The bottom line: What’s good for protecting our service members is good for protecting all consumers. If Congress had even a smidgen of courage, it would enact such legislation ASAP.

 

Check Also

This week’s top stories on NC Policy Watch

1. Powerful new hog trial testimony puts Smithfield ...

Top Stories from NCPW

  • News
  • Commentary

Billy Houston, who is under state investigation for allegedly falsified hog lagoon samples in Duplin [...]

As a former police officer and firefighter, Wesley Sewell has encountered odors so putrid that they [...]

When Sarah Jessenia Lopez plead guilty last month to attempted notary fraud related to bail bonding, [...]

Early voting in North Carolina is a big deal with a big turnout, but advocates are bracing for a neg [...]

“How long before we say enough is enough?” state lawmaker Ted Davis Jr. asked his colleagues in the [...]

Like so many people in this state and across this country, I have not gotten over my funk regarding [...]

The easiest way to push back against NC’s rogue General Assembly is to vote against all six proposed [...]

The post It’s getting deep… appeared first on NC Policy Watch. [...]