Interesting about payday loan rules

"City should look at payday loans" editorial says the Consumer Service Alliance of Texas (CSAT) supports effective, reasonable, and meaningful regulation of small loans. CSAT asks the city and the Globe-News to take into careful consideration regulation-related facts before jumping into conclusions.

Although the appeal sounds reasonable and, to some extent, matter of course, it is still works against regulations' supporters. Texas authorities and consumer activists (like AARP) make decisions that result in hundreds of layoffs, ruining of small loans industry and stores closure.

But, all the same, let's have a look at the true facts:

1. Regulations' supporters say 500 payday loans are usually taken by senior people. As a matter of fact only 6% of small loans are made to senior people, so evidently small loans lenders don't want to cheat elderly people.
2. APR is calculated by multiplying 2 week loans' rates by 27 (there are 27 weeks in a year.) Does it really make sense to calculate 2 week loans' APR?
3. Some people say 24 hour payday loans are not regulated by law. However over 17 laws regulate small loans.
4. It is utterly impossible for "an average borrower to pay $840 for a $300 loan." Yes, it really is impossible. However, where is the connection between these figures and average charge for a $300 loan? The average charge is $60, resulting in a $360 payment.

Attention! The Consumer Financial Protection Bureau (CFPB) is a proposed by the Congress' financial reform bill. The Bureau is tasked with protecting consumers.