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Because compliance with regulation requires additional work and thus costs money. As every payday lender has to do this, they will raise their fees.
by tjansen 8y ago
Because compliance with regulation requires additional work and thus costs money. As every payday lender has to do this, they will raise their fees.
- mikeash 8y agoObvious counterpoint: regulations which cap fees below the current level.
- tjansen 8y agoThat's not the kind regulation the article is mentioning. But generally, the effect of limiting the fees in a working market (and there is no indication here that the market isn't working in this particular segment) would be that it either has no effect, if the fees are already lower, or it de-facto outlaws payday loans.