Payday loans, interest rates need capping?

[Hopeforever]

A few days ago I started a thread on this but wrongly linked to a petition (sorry MN Towers) however I was really interested in people's comments, varied and thought provoking.

Perhaps we can restart the thread but without contravening the rules.

This caught my attention today,

www.huffingtonpost.co.uk/2012/11/28/payday-loans-interest-rates_n_2206221.html

[ttosca]

Cogito-

Here's a thought Tossa... rather than just plaigiarising other people's ideas, why not actually contribute some of your own?

The great thing about 'facts' is that they belong to everyone. You, too, can go on the internet and get facts and figures to support your argument - at least, you can try!

I'm trying to add some realism to the debate rather than a back and forth exchange of what-I-reckon-because-the-Daily-Mail-told-me.

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Maybe you couldn't be bothered to read the whole thing?

Here's the short version: there's no available evidence to support the notion that caps would put payday loansharks out of business, and some evidence to show that they can and do operate profitably with caps.

[MrsTerryPratchett]

We have caps in Canada and, considering the people I work with who get loans, notably one person who got them to buy heroin, it doesn't stop them lending to many people.

And, some of it IS about not understanding interest rates. It really is. They don't understand the cost of borrowing.