Pay Day Loans

[bhunter]

The SF Chronicle's love affair with regulations:

Now that it has a director, the Consumer Financial Protection Bureau can begin writing and enforcing rules for a wide range of financial service providers that have been largely unregulated at the federal level.

...

One of their top targets: payday lenders and other providers of high-interest, short-term loans.

In California, a consumer can borrow up to $300 from a payday lender and the lender can charge up to 15 percent of the loan amount, for a maximum fee of $45. For a two-week loan, that's equivalent to an interest rate of almost 460 percent a year, says Joe Ridout, a spokesman for Consumer Action.

http://www.sfgate.com/cgi-bin/articl...BUBG1ML04N.DTL

What are the unattended consequences of pay day loan regulation? One can immediately see a rise in loan shark loans and the attendant violence. This also aptly demonstrates the incessant need to limit the choices of consumers by the left, then again, they may just want a monopoly on coming to the aid of their constituents. Leave it to San Francisco to be pushing the nanny state while they wallow in their decadent lifestyle.