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Short-term Lender Cap Could Cut off Last Resort of Many with Low Income
Without a pawnshop and a gold onyx ring, Patrick Heinaman's grandmother might have missed her daughter's funeral. The short-term loan put the 412-mile trip to Port Lavaca, Texas, within reach. It was costly, but her only option. But Heinaman's grandmother and other low-income borrowers would have a harder time getting an emergency loan of that type if the legislation Congress is considering, which would cap interest rates on all consumer credit transactions, passes. ...more...
Federal Charter for Nonbanks Would Harm Unbanked
By Kevin Prochaska
Ryan Gilbert's recent BankThink article "Give Nonbanks a Nationwide Reach" is part of a massive lobbying campaign by major payday lenders and others to sway Congress to pass H.R. 1909.
The National Pawnbrokers Association opposes the federal charter proposal Ryan Gilbert supports, because it is a bad deal for consumers and will further degrade credit options for the 44 million un- or underbanked consumers in the U.S. This legislation will provide th ...more...
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