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 banker? Your credit union? Your mom? Big brother? Nancy Pelosi? Bernie Sanders? You do what you have to! Hopefully, you have several CHOICES for solving your immediate problem.

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.