What is your take on the bill introduced reducing the interest rate to 36% APR? Thanks, Roger P.
Great question.
I don’t “worry” about it. I’ve been lending since 1998; Garden Grove, Calif. was our 1st location.
New legislation introduced/defeated/passed… is part of the business of lending.
There are simply too many creative lenders, a daily improvement in tech, fraud prevention, a downward cost trend on loan underwriting, improved collection tools… and unquenchable consumer demand for loan products to ever kill “the business of lending money to the masses.”
36% APR? Who cares. Look at this lender to the military for just one example: OmniMilitary Loans. They advertise loans up to 35.99% APR.
Dig through all the fees. They often exceed 200%. Admin fee, debit card funding fee, they encourage “renew loans” after 4 payments, payments made via allotments… These folks have nowhere to go when faced with a financial challenge! “Thin-file; No-file; build credit; basic 101 tools…” I’M NOT PICKING ON THIS TEAM! They are offering a service that appeals to a huge demographic. A demographic who VOTES by choosing OmniMilitary to solve their financial challenge.
Look! It sucks when you’re in a financial bind. I’ve been there. That’s how I learned about the payday loan industry. But when the car needs fixing, the reconnection fee for keeping on the lights, the money for rent/food/prescription… you name it, runs out, who you gonna call? Your local “consumer advocate?” Your
Lacking multiple financial choices forces consumers facing credit challenges into using bank and credit card NSF/Overdraft fees to deal with emergencies. These “products” approach 1800% APR’s! AND, the banks and credit unions incur virtually ZERO risks! They get access to the borrowers’ bank account before ANY other lender! So-called “consumer advocates” refer to “alternative lenders” as “loan sharks? Man, look in the mirror, Bankers! Alternative financial lenders deposit cash into a borrower’s bank account and then literally pray they get paid back! This is simply not the case with bank products.
From BankRate.com: “While banks were technically earning a bit less from overdraft fees in 2017 than they were the previous year, they remain a key source of revenue for many banks. And despite political pressure, overdrafts fees are unlikely to fall significantly in the coming years. “
I’m not going to preach to the choir! I’m ASSuming you are a member!
SUGGEST YOU READ: “Debt: the First 5000 Years” and “The Ascent of Money” for perspective.
Jer – Team Trihouse702-208-6736 AND yes, I am biased. I admit it.
