Editorial “Whose payday?” opines:
“House Bill 2191, sponsored by Rep. Chris Ross, R-Chester County, and co-sponsored by five Lancaster County lawmakers (John Bear, R-97th District, Scott Boyd, R-43rd, Tom Creighton, R-37th, Dave Hickernell, R-98th, and Gordon Denlinger, R-99th), opens the door to payday lenders in Pennsylvania by removing the state’s 24 percent cap on interest charged to borrowers…”
“Under the proposal, according to the Philadelphia Inquirer, a $300 loan would carry interest of $42.50 — an annual interest rate of 369 percent…”
“Once they get caught in the payday loan trap, borrowers find themselves in a downward spiral. Bled dry by the interest and fees they must pay on the short-term loans, they end up having to borrow again — and again, and again. Nationally, people who take out payday loans are in debt to their dealers for 200 days out of each year, the Inquirer notes….”
WATCHDOG: Three wags of the tail! Chris Ross, John Bear, Scott Boyd, Tom Creighton, Dave Hickernell and Gordon Denlinger should be deeply ashamed for sponsorship of such a bill. We note they are all Republicans, but apparently not the type of Republicans of two decades ago.
What? My windows calculator says 42.5 / 300 is 14.2% not 369%? This must be Philadelphia math.
Once they get caught in the payday loan trap, borrowers find themselves in a downward spiral. Bled dry by the interest and fees they must pay on the short-term loans, they end up having to borrow again — and again, and again. Nationally, people who take out payday loans are in debt to their dealers for 200 days out of each year, the Inquirer notes…
Yes, which leaves borrowers with less money to purchase lottery tickets, which are not only state-run but also heavily advertised.
Unfortunately the main difference between the Dems and Reps is that the Dems would have the state run the payday loan business.