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Nowhere in the regulations is government banning PayDay loans (now or previously). This is about setting limits on just how much profit they can make per loan (
by Someone1234 8y ago
Nowhere in the regulations is government banning PayDay loans (now or previously). This is about setting limits on just how much profit they can make per loan (since financial complexity makes it trivial to hide the true dollar cost).
And actually lotteries are heavily regulated, particularly in relation to odds, costs, and complexities. You know, when you buy a ticket, exactly how little chance you have.
- pjscott 8y agoThat is, in effect, a limit on how risky their loans can be if they want to stay in business. The more likely someone is to default on a loan, the higher the interest rate needs to be in order for it to have a positive expected value for the lender. Or, to put it another way: the more restrictive the cap on interest, the more poor people become unable to get an emergency loan under any circumstances.