Wednesday, January 16, 2008

Doing something about payday loan sharks

Wisconsin still has been at the back of the bus when it comes to regulating payday loan sharks who charge triple digit interest on supposedly short-term emergency loans.

As mentioned here several weeks ago, Oregon enacted tough legislation which essentially put most of these disreputable lenders out of business overnight. Wisconsin has done nothing.

One problem is that these shady lenders often affiliate with an out-of-state bank to launder their lending this bypassing state regulation.

The AARP Foundation is backing a class action suit in Pennsylvania which says the these loans violate state usury laws and that the attempt to bypass state regulation is a sham that shouldn't be recognized.

It may well be that it's time for Congress to act but don't look for those high-rollers to have any real compassion for the little guy.

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