3 ms·

A lot of states have capped those rates relative to prime.

• ruined 5y ago
  which simply reinforces the idea that it's not a market. credit cards, too, are generally capped. the rate always maxes out the legislated cap. so it's not really dependent.
  • Ericson2314 5y ago
    Yes the market power is also one sided, capping the rate also doesn't really help without guaranteeing more access to credit. The best thing is: a) UBI, just hand out a tiny bit of money to make poor people more liquid, because liquidity kills, not insolvency b) postal banking, because even shittier than a payday loan is high fee check cashing without a pretense of debt! Poor people hopefully at the point can save up a paychecks worth of buffer in their bank account, and don't need postal bank loans to replay payday loans.