I am posting this, because I find this one to be particularly disturbing. Here is the original story by the New York Times.
Take it away Jim!
Audio:
[podcast]
Loan sharks and their lobbyists really know how to put the “ick” in eth-icks.
Though they’ve tried to buff-up their public image by calling themselves “consumer lenders,” their game remains the same ethical mess it’s always been. They target poor and financially struggling people, entice them to borrow with come-ons touting “quick & easy” money, then hook them to installment loans with interest rates up to 36 percent. At such rates, it’s hard for these hard-hit people to repay the bank on time, so most are forced to keep borrowing more money just to pay down the previous loans. To make this even ickier, the sharks are especially fond of setting up their loan offices around Army bases so they can prey on America’s low-paid, financially-stressed soldiers.
The good news is that several state legislatures are taking action to provide relief. The bad news is that their relief is not for the borrowers, but the banks! With an army of lobbyists and a multimillion-dollar arsenal of campaign cash, the industry has already induced legislators to lift interest rate caps in eight states – most of which have a large number of military bases
Read the rest at: Jim Hightower | State legislatures are helping rich lenders rip-off the poor.