Blog - Articles Tagged 'Pawnshops'

Some of the most absurd lending and borrowing happens in the payday loan industry. According to the Center for Responsible Lending (.pdf), the average payday loan borrower pays $800 for each $325 they borrow. That's an absolutely absurd interest rate, but according to the New York Times, the senators who are designing financial reform legislation are going to include a special carve-out so the industry can keep on dealing in these abusive loans:

I've been writing a bit about Rep. Luis Gutiérrez's [D, IL-4] bill that would put what amounts to a generous 391 percent cap on payday loan interest rates and the pawn shop industry's campaign against it. Mike Lillis of the Washington Independent has the campaign finance perspective: Of the 21 individuals who donated more than $21,000 to the Illinois Democrat in the first quarter of this year, 15 represent the pawnshop industry, according to documents filed with the Federal Election Commi...