This morning’s lead editorial in the Greensboro News & Record is a “must read.” In “Don’t repeal rules on payday loans,” the N&R tells is exactly like it is when it comes to efforts by several North Carolina congressmen to coddle the predatory sharks in the payday lending business.
Here are some excerpts:
“Payday lending has been illegal here since the General Assembly passed a law banning such businesses in 2001.
So why would members of Congress from North Carolina be pushing a resolution to repeal a new federal Consumer Financial Protection Bureau rule imposing limits on payday lending and other forms of predatory short-term, high-interest loans?
The answer to that question is that there is no good reason.
Yet Mark Walker of Greensboro and Ted Budd of Advance, as well as Richard Hudson, Patrick McHenry, Robert Pittenger and David Rouzer, are all sponsors of the resolution.
One motivation no doubt is lobbying from the payday lending industry, which is worried about losing its ability to rake in thousands of dollars in interest and fees from people who can’t afford to pay them.
In 2001, North Carolina leaders of both parties banned payday lending because they knew it was cruel and harmful to those who could least afford it….
Even with the state ban, internet payday lenders are still able to prey on consumers here.
The rule under attack now requires that those who make payday loans, loans on car titles and similar loans verify that their customers can afford to repay them.
It also caps the number of times someone can take out successive loans.
That seems reasonable, but the industry says the rule would run many payday lenders out of business.
If that’s the case, they shouldn’t be in the business of preying on people who can’t afford their loans….
North Carolina is better off when payday lenders can’t take unfair advantage of working people who find themselves in a bind.
Our representatives should be supporting rules that extend needed protections to more consumers, not undermining the progress the state has made.”
Click here to read the entire editorial.