Dr. Evil and the Payday Loan Sharks

Submitted by Diane Farsetta on

The Center for Economic and Entrepreneurial Literacy (CEEL) is one of lobbyist and serial corporate front man Rick Berman's "more recent creations," writes Daniel Schulman. "CEEL's surveys -- designed to show that Americans don't know diddly about finances and therefore deserve some of the blame for the current economic tumult -- have been quoted on the nightly news and are frequently cited in newspapers. And CEEL has also promoted payday loans as a lifeline for desperate borrowers." While "there is no evidence that CEEL is bankrolled by the finance industry or payday lenders ... some of its talking points are strikingly similar to the ones that payday lenders have been repeating for years." CEEL is running pro-payday loan ads in the Washington, DC Metro, suggesting "a brewing federal fight. A pending bill sponsored by Rep. Luis Gutierrez (D-Ill.) would essentially preserve the status quo for payday lenders -- a top source of his past campaign contributions. But another, championed by Sen. Dick Durbin (D-Ill.), would impose a 36 percent cap on interest rates."

Main Source: 
Mother Jones, September / October 2009
Topics: 
Front Groups
U.S. Congress
Economy

Comments

Mark Hofmann replied on

Payday loans exist because there is an segment in society that needs them. Unfortunately these lost souls will wander around in finacial purgatory as the financial predators feed off them for ever.

I'm not pro Payday but the banking industry in general loves to smear this kind of loan because the product Payday provides is in direct competition to the overdraft fees that the bank charge their customer base. The banks never break down what their overdraft fee converts to as an a.p.r. A bank charging $30 for a $2 overdraft amount to some serious interest.

As long as there are unfortunate people who need money there will be someone to exploit them. It's a sad fact about our humanity, but it's a concept that is old as mankind.

Rob71 replied on

If used properly payday loans can help in an emergency. If abused they can destroy your credit.