Is Capping Payday Loan Rates a Good Idea?

Ben Glass

Attorney
(866) 735-1102 Ext 320

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Here we go again. New laws being floated in Virginia to cap profits a business can earn.

Those businesses making "payday" type loans are in the riskiest of lending businesses. They are taking a huge risk, and should be allowed to charge whatever they want as long as

1. Loan terms are fully and fairly described
2.The rules of the loan terms are followed.

After that, no one is forcing these folks to borrow money. This is just like the bailout of the sub-prime mortgage industry. No one forced those people to borrow money they couldn't afford to borrow.

The government should stay out of the business of regulating payday loan rates. Yes, make sure loan terms are disclosed. Yes, make sure Fair Debt Collection rules are followed.

But no, don't tell a business the amount of profit they can earn. That's simply un-American.