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Dear Congress: get rid of the rent-a-bank ruse

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Dear Congress: get rid of the rent-a-bank ruse

The present push by payday lenders in an attempt to outflank state legislation is but one explanation Congress has to work on an innovative new proposition that will cap interest levels at 36%.

Contemporary payday lenders — providing the high-interest credit that happens to be called today’s loan sharking and therefore were only available in the 1990s — have found how to circumvent state guidelines that prohibit or restrict exorbitant interest levels, sometimes rates outstripping 500%. Continue reading