From CSUN
If there weren't already something vile about charging usurious rates to make loans to the poorest, most desperate customers while cashing their paychecks, the "fringe banking" operations such as payday lenders cause other harm to the communities in which they proliferate, researchers say. They studied the operations of the businesses in Seattle and found that, even after controlling for certain factors, that crime increases around these predatory lenders who concentrate in poor and minority neighborhoods. The researchers also make that case that if Congress found these businesses noxious enough to regulate their activities with military families, legislators should act similarly and cap their maximum allowed interest rate at a still staggering 36%.
For 'fringe banking,' a call for an interest cap -- at 36%
Click here to read full report on payday lending, neighborhood crime
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