Better policing needed for payday lending

  • Article by: Editorial Board , Star Tribune
  • Updated: November 15, 2013 - 6:36 PM

Religious coalition highlights the downside of short-term loans.

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boris123Nov. 16, 13 7:30 AM

Payday lending has doubled in size in Minnesota in the last five years. That explosive growth alone warrants scrutiny from the Legislature." >>>>>What evidence is there to suggest that politicians know how to manage other peoples finances?

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unsinnNov. 16, 13 8:51 AM

I recommend the "faith community" attempt to educate the people who are taking out the payday loans. All the laws in the world are not going to save people from their own poor decisions.

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vlombardyNov. 16, 1310:04 AM

This may be a problem, but a much greater problem is the interest free loans made to a handful of banks, used for hundreds of trillions of dollars worth of derivatives gambling. It is immoral, and is the next bubble to burst.

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jbpaperNov. 16, 1310:12 AM

What is the default rate of these loans? While the fees/interest does seem excessive, are they high in order to gouge the the people taking out loans or are they high to offset all the loans that aren't paid back.

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owatonnabillNov. 17, 1311:53 AM

Caveat emptor. By and large these loans are high-interest because they are high-risk. Just from the nature of the beast one can assume that these debtors are in the main poor handlers of money or they wouldn't need to borrow from these places in the first place. Owatonnabill has precious little sympathy for fools.

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arspartzNov. 17, 13 6:26 PM

Perhaps these religious organizations should start their own loan funds to help the down and out and compete with the evil companies.

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usefulengineNov. 19, 1312:53 PM

Why single out payday lenders? This entire economy is driven by credit, as most of us could not get by without it in some form. People turn to these lenders because they can not access the other conventional forms of credit that the rest of us rely on. The growth of this industry is fueled by the scarcity of conventional credit for a growing number of people, not from some predatory marketing scheme. The focus on payday lenders is myopic, a critique of a symptom while neglecting to look at the cause.

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