How your leaders fail you. Payday lenders less dangerous than big banking.

The financial crisis we’re in started when we deregulated banking. Banks got bigger, greedier, more powerful. My little local bank never would spend money on a lobbyist, but Bank of America, would spend lavishly.

In Ohio, our legislators went after “Payday lenders” and their 500% interest rates which was a good thing, but, now- they are chasing after the loopholes:

At Check Into Cash, customers taking out a two week, $300 loan repay $318.62 — $15 for an origination fee and $3.62 in interest. Loans are not dispersed in cash, so Check Into Cash charges 3 percent — $9 on $300 — if borrowers wish to cash the check at the store.

via Payday lenders use loopholes to survive.

What’s amazing is that if you overdraw your checking by a dollar, miss a payment window by a few hours with a “bank” can charge you $39 and get away with it- over, and over again. It’s how they pay their lobbyists and push you closer to foreclosure, bankruptcy, failure.

If you do the math, and it’s pretty simple, even with the “origination fee, interest and the 3% fee for cashing the check, you are still ahead of the big banks.

When Commissioner Dean Lovelace worked to pass anti-predatory lending practices in Dayton, very quickly the banks went into action, paying their lobbyists to override local laws with State ones. The predatory lending legislation at the State level was toothless and worthless, but the politicians who wrote it all got paid.

It’s time to ask your State reps about why banks haven’t been challenged with their exorbitant fees, and leave the payday lenders alone for a while.

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