Do you actually know what default rates are like for people without access to better sources of credit? The interest rates are so high because that's the only w

Do you actually know what default rates are like for people without access to better sources of credit? The interest rates are so high because that's the only way payday lenders can make money. In states with usury laws that prohibit such high interest rates, you don't see lenders lowering their rates; you see credit for poor people dry up completely. Liz Warren does have a good solution to this, namely postal banking. (The US government can swing the losses incurred from lending small sums to high credit risks at low rates.) But just killing the payday lenders without setting up an alternative is not a good idea.