Payday loans regulation and the after effects of subprime lending
Posted on March 7, 2009
Filed Under Payday Loans
The after effects of subprime borrowing and the wave of reaction from politicians and regulators is set to affect the payaday loan industry.
Will the payday loan industry suffer job losses with a number of states already capping the interest rates to a maximum of 36% setting the trend? Will the industry die a slow death denying an essential service to those in need of emergency cash?
It can be argued that the greater regulation and trasnparency that may be brought into the industry will bring greater credibility to the industry and help weed out questionable that lenders with questonable practices.
It will be interesting to monitor the developments in the payday loan industry. With the US now in deep recession resulting in the middle class delving into payday loans, the consequnces of any regulatory changes will have a much broader impact.
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