Lawmakers in Virginia appear poised to “fix” an elusive “predatory lending problem. ” Their focus may be the small-dollar loan market that presumably teems with “outrageous” interest levels. Bills before the installation would impose a 36 % interest limit and alter the market-determined nature of small-dollar loans.
Other state legislators around the world have actually passed away restrictions that are similar. To boost customer welfare, the target ought to be to expand usage of credit. Rate of interest caps work against that, choking from the way to obtain small-dollar credit. (suite…)