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Congress bans short-term lending, the poor pay a high price

Stephen Moore, Washington Times

One vital on-the-street reality that the consumer advocates and politicians fail to take into account is that payday and online lenders have actually helped low-income areas in an important way: They have largely replaced loan sharks. The interest rate on an unpaid loan to Guido is a broken arm.  It also speaks volumes of the motivation of the Fair Credit Act and its supporters that the law would exempt credit unions. Run short-term lenders out of business, as some states have already done, and the victims are the people who can no longer use the convenience of these services that were once down the street. There is evidence that many Americans living near a state border, drive out of the state without payday lenders into the states that have them.