“In a study conducted by the Federal Reserve Bank of New York, researchers found that states with bans on payday lending experience an increase in bounced checks, higher rates of bankruptcy, and more complaints related to collections” writes Matthew Glans in the Illinois Daily Herald titled “Payday loan bill is regulatory overkill.”
Eight days later, in the same newpaper, Debbie Goldstein of the Center of Responsible Lending writes: “According to CRL’s research, borrowers who receive five or more loans a year account for 90 percent of the lenders’ business.”
The one thing I don’t get is that the payday lenders have put the loan sharks, more or less, out of business. Isn’t this a good thing?
