DNC chair sponsoring pro-payday loan bill

bad seed

bad seed

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Everyones favorite DNC chairman, Debbie Wasserman-Schultz is trying to undermine the efforts of Liz Warren's consumer protection agency that aimed to police "payday loan" predators.

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http://www.huffingtonpost.com/entry...z-paylenders-cfpb_us_56d4ce38e4b03260bf77e8fc

"Consumer groups are appalled by the bill. The Consumer Federation of America, the NAACP, The National Consumer Law Center, The National Council of La Raza, The Southern Poverty Law Center and hundreds of others wrote a letter to every member of Congress in December urging them to oppose the legislation. "
 
What exactly is this about?
 
How does she even have her position? Does anyone like her?
 
The truly offensive thing is how much power she wields in the Democrat party despite having no progressive principles. She sides with financiers, profiteering private prisons, and warmongers at every opportunity. She only gets elected by virtue of familiarity with her senile Florida retiree constituents.
 
JDragon said:
I seriously do not get it. Is it about high feed / rates for small creditors? I am not familiar with this issue.
Click to expand...

Payday loans are small loans with high interest rates.

Your car breaks down and you have no cash or credit card but you have a job?

Take out a payday loan at a high interest rate so you can get your car fixed.

For poor people payday loans are necessary evil for situations like that but there is a charge that many of them predatory and the result is a revolving door of debt at high interest rates.

Obama put Warren in charge of regulating the industry but it seems from that article that the DNC chair is taking a states rights position that the states are better off regulating the industry based of regulation in Florida.
 
Thanks for elaborating!
 
Payday loans should be strictly regulated if they are allowed to exist at all. I have seen (in Canada) rates of over 500% APR (20% per biweekly pay period), and people who need these loans in the first place probably aren't going to be able to pay them back on those steep rates. Some places even allow you to take out additional loans even if you haven't repaid your last payday loan with them, so they stack up and leave people bankrupt.

Unfortunately, there is a demand (possibly a need?) for readily available, small, short term loans that banks are not willing to fill. The risk that the lenders assume by issuing these loans is high, as most people are unable to repay and then the account must be sold to collections agencies for pennies on the dollar, and if the borrower goes bankrupt the account is lost. There is no way that a bank would ever consider loaning money to these people; the fact that they need a payday loan in the first place would essentially disqualify them from consideration.

I believe that the existence of payday loans as they are today is a net negative for a society's health, but with the way banks and government are structured, I can't really think of a way to deal with the demand for small emergency loans that doesn't have similar drawbacks.
 
bad seed said:
The truly offensive thing is how much power she wields in the Democrat party despite having no progressive principles. She sides with financiers, profiteering private prisons, and warmongers at every opportunity. She only gets elected by virtue of familiarity with her senile Florida retiree constituents.
Click to expand...

More proof that both parties are the same and controlled by the plutocrats.

Even the 'soshalist libruhl Dems'
 
That's infuriating. The rapidity with which payday loan storefronts popped up after the loosening of restrictions was horrifying. They need to be put down.
 
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