payday loans

[newmachineoverlord]

I haven't seen any data or articles on this topic. What percentage of currently extended credit is in the form of payday loans? Are those loans also sold as securities? What role, if any, do they play in the current liquidity crisis? I still see them all over the place.

IMHO the "bailout" should have included protections for borrowers, making it illegal to raise interest rates on already incurred debt and ending the practice of the ARM.

 

[Juddog]

Originally posted by: newmachineoverlord
I haven't seen any data or articles on this topic. What percentage of currently extended credit is in the form of payday loans? Are those loans also sold as securities? What role, if any, do they play in the current liquidity crisis? I still see them all over the place.

IMHO the "bailout" should have included protections for borrowers, making it illegal to raise interest rates on already incurred debt and ending the practice of the ARM.

Payday loans are small operations that profit from stupid people. They aren't big enough to affect the market, they're in the same category as pawn shops.