Why are there predatory lenders who are allowed to prey on the poor and the helpless among us? Isn’t government there to protect us from greedy and unscrupulous individuals and businesses? Some government agencies try to enforce the law and protect the weak. If they succeed at the state level, predatory lenders will just move to another state, there are 50 of them you know. In many jurisdictions, legislators are bribed to change the law or enforcement agencies encouraged to turn a blind eye. Behind all the pious language about markets and competition regulating behavior is the sad fact that the high interest rates of predatory lenders, be they Wall Street banks or local auto title lenders, are an efficient mechanism of taking from the poor and giving to the wealthy. And that is a source of income that the 1% will fight to keep.
- Chris Peterson on How to Regulate High-Cost Small Loans (pubcit.typepad.com)