Lion of the Blogosphere

Payday lending to be restricted

NY Times article explains that under new regulations from the Consumer Financial Protection Bureau, payday loans will be sharply curtailed.

I know that libertarian Republican types believe the explanation from the lobbying group for payday lenders, “thousands of lenders, especially small businesses, will be forced to shutter their doors, lay off employees, and leave communities that already have too few options for financial services.”

But because we at this blog know about HBD and also know about value transference, we know that this industry is a value transference scheme that rips off people with low IQ and low future-time orientation. Thus I support these new regulations.

Written by Lion of the Blogosphere

June 2, 2016 at 9:07 am

Posted in Economics

18 Responses

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  1. Payday lender Advance America, in anticipation of this, has relaunched its ad campaign, including this ad which has to be the absolute nadir of provider-beta humiliation. Must be seen to be believed.

    Deserves to be in the hall of shame right there with Century 21’s famous “The Debate” ad about the hubby acquiescing to the housing bubble.


    June 2, 2016 at 9:25 am

  2. New York and some other states already prohibit or greatly restrict payday loans, so it’s not as if federal restrictions would be wholly unprecedented or would cause impossible hardship to lower income people.



    June 2, 2016 at 9:27 am

  3. They should be curtailed but not too much. Low IQ people are going to borrow money and get taken advantage of. At least payday lenders don’t use physical violence to collect debts.


    June 2, 2016 at 11:33 am

  4. I think Steve Sailor had an article somewhere (or maybe he just made a one off comment) that modern day payday lenders supplanted loan sharks in the prole lending business. What should really be done is you should be able to borrow small sums against social security and then the government repays itself at the top of the capital stack when taxing you.

    What are the returns on payday lending? Is it just a little money being borrowed each time every month that’s always paid back, or is incremental debt build up? If it’s just a short term bridge loan to make rent every month it should be easy enough to cure by forcing everyone to maintain a minimum savings account (eg. You charge an insurance fee that is waved if you have more than $3k in the bank. The insurance tax would be very small <$1 month but would cover the very lowest brackets of society against their own lack of future time orientation and self control).

    I realize their is a compelling libertarian argument against this kind of intervention, but this means tolerating a more violent society as payday lenders replaced with loan sharks means tough intimidation a based collection.


    June 2, 2016 at 1:59 pm

  5. We used to restrict gambling for the same reason, but now you can gamble just about anywhere in America.


    June 2, 2016 at 2:00 pm

  6. There will still be a demand for those loans, so they’ll have to go underground to get the money. A place where the do-gooders won’t go, so the net effect will be to make it worse than it is now.

    But remember; THEY HAD GOOD INTENTIONS! Every time liberals screw something up, this is always the excuse.


    June 2, 2016 at 2:04 pm

  7. I saw an article very recently about companies that are essentially giving their employees payday loans (but at a much lower interest rate). Some of these companies are well-meaning, helping their workers pay down student loans at low interest, but others are just cashing in on the payday phenomenon. Why let some third party make money off your employees if you can do it in house?


    June 2, 2016 at 2:04 pm

  8. The people who would have used short term loans to keep their lights on or buy their oxy or bond out their grandson will NOW: rob me, burglarize properties, deal drugs, etc. Yeah, big improvement.

    You can’t exactly charge 5% per annum on a two week loan and make money, especially loaning to groups that would be expected to default at a high rate. The rates are of course going to look high for any loan in that circumstance, doesn’t make them exploitative. It’s that or simply not having such a service available to that class, in which case they’ll do just what you think they’ll do to get quick money.

    The people who run these things aren’t exactly the top 1%, they’re owned and managed by the same type of people who own chains of “vaping” shops or whatever the new fad is with the poor in any area.


    June 2, 2016 at 2:48 pm

    • “The people who would have used short term loans to keep their lights on or buy their oxy or bond out their grandson will NOW: rob me, burglarize properties, deal drugs, etc.”

      If that’s what they would do, then they will do it anyway after the use up their payday-loan credit. I guarantee you that eliminating payday loans will cause zero increase in crime, and could even reduce crime if people are using the payday loans to buy drugs.

    • They rob you anyway when they default and the bank either loses so much money that they require a bailout or the pension fund that they sold the liens to is forced to collect at $0.05 on the dollar. Either way monetary debasement is probably occurring.


      June 2, 2016 at 10:36 pm

  9. Now let’s go after the banks that issue credit cards at 22%, but, oh, they are protected, through his contacts and lobbying, by former Senate leader Thomas Daschle, that great tribune of the proles.


    June 2, 2016 at 4:28 pm

  10. Oh the unmitigated racism and disparate impact! Payday loans is how Stone Age blacks exist here at all. Without Math skills or an understanding of time, blacks need immediate cash to make up for spending all their money yesterday. Why how will those NBA millionaires pay their gambling debts and drug dealers without payday lenders? The mob isn’t dumb enough to lend blacks money. You’re just all haters for allowing this that’s all. Let’s all remember the immoral word of Marchin’ Lootin’ Kang. “I might not get there wichu, but bring something back, huh. Bring somethin’ back and I’ll hitchu up nex time.” Its not wisdom, but he’s got one day to show for his race, and that’s a three-day weekend for y’all.

    Joshua Sinistar

    June 2, 2016 at 4:45 pm

  11. Criticism of payday loans often focuses on the high interest rates when they aren’t the real issue. Sure, the APR’s are sky high, but in monetary terms that’s usually of little relevance given the very short terms. What actually screws people is the practice of rolling over balances into new loans again and again. Limit that, and the loans won’t be so burdensome.



    June 2, 2016 at 5:12 pm

  12. This kind of predatory lending at astronomically high interest rates should be ILLEGAL! It’s no different from (and probably is connected to) the MOB/MAFIA!

    Libertarians are Aspergers losers and dupes. People who don’t intellectually progress beyond Ayn Rand are retarded cucks.


    June 2, 2016 at 10:08 pm

  13. First, loan sharks don’t lend money to poor people. They lend money to other criminals to finance criminal activity. If you need gear for hijacking trucks or heisting diamonds, well, that’s what loan sharks are for.

    Second, the money being borrowed from pay day loans is paid back through government money. Welfare cash is what is used to make back the payments. In effect, the government is indirectly paying for pay day loans. It makes sense to restrict them.


    June 3, 2016 at 1:09 am

  14. People should be able to get an advance from their employer, freind, family and community. If they are always out if money, they need to work more and spend less. This is just so simple. Say you have a cow. How can you feed the cow less and get more milk out of it? Simple, you give it less food to eat and you milk it more! So this is very simple, again: work more, spend less. If you work more you automatically improve because you earn more and have less time to spend money. I don’t know why I even need to write about this. Often I’m so bussy working that I don’t even have time to handle my financial operations. So I’m literally sitting on all this unprocessed money! I have to borrow then, but it’s from my own folks and I pay no interest. This is a comedy actually: my landlord and I are both so bussy that I try to pay him rent ( cash ofcourse) a week before the first of the month and it often takes three weeks before we can do it. This is how people who need money should do it.


    June 3, 2016 at 7:01 am

  15. There are a lot of industries that rip people off. Payday loans; Electronic/furniture rental; Leasing cars; Whole life; Gambling/casinos; Alcohol, tobacco and drugs. I’d even include sodas. The world would be a much better place without any of those. Having said that, criminals would just move in to exploit the lack of legal options. As a result, it would fuel a growth in organized crime and black markets. It’s better to let stupid people pay their “tax” than create conditions for organized crime to flourish.


    June 4, 2016 at 8:08 am

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