The 390% you quote is the simple-interest, NOMINAL APR (15/100)x(365/14)=391%. The law should be changed to use the mathematically-true, compounded [^] EFFECTIVE APR ((15/100)+1)^(365/14)-1=3724%. The EAPR is 26,664 time the tolerance of accuracy of 0.125%, (3724%-391%)/0.125%. Anyone who has taken Finance 101 should know this.

I thought the Consumers Union / Consumer Reports were to be unbiased. However, it appears to be anti-business and pro Obama. When you kill business you have no jobs!

If the interest rate is too high move on to someone else or manage your money better. The interest rate is high because there is a high probability that the loan may not be paid back on time or not at all. Many of the collections are made through the courts by garnishments. This is expensive and the reason why payday loan facilities charge so much. It’s not greed as you propagate. Government needs to stay out of business because it is the problem, not the solution.

I don’t own or work in the loan business.

I actually believe that the interest rate cap should be lower. If they cant stay in business without charging such outrageous rates then they are lousy at business and should go away.

Ronda Redman

RE: Pay Day Lending from loan sharks

Congress
Please defeat a bill permitting 390% to be charged for very short term lending. This is a loan shark's dream and a citizen's nightmare.

Sincerely,

I understand if a consumer is often late, or gives the bank a reason to raise the rate.
However, they just send out notices which say they are raising your rates for everything.
What happened to the usury rate cap?
First we tax payers have to bail them out then they decide to tackle us again.
I am a voter and a speaker.
Would appreciate your voting for the good of the people, not the business'.

Usury under the guise of free enterprise/capitalism is, pure and simple, a ripoff. Banks/investment companies borrow money from the fed or being bailed out by the treasury ought to be limited by the cost of thier money purchase., ie. buy at 1%, sell at most 3%. If they want total free enterprize then don't borrow from the government. Then there is to be a CAP. 350%...FORGET ABOUT IT.

Why are we not charging the banks 39% interest on the TARP loans? After all, by the banks' own standards, their credit rating is beyond poor, and they have a terrible repayment record. They just keep coming back for more TARP money.

I can't believe this is evenly seriously considered as a law. The sterotypical loan shark off the street would be facing jail time if they charged what these so-called legit businesses charged. This isn't free enterprise or capitalism at work. Its just plain criminal.