elizabeth warren-1

The USPS to deliver the mail *and* get involved in banking?

What could possibly go wrong?

Via Daily Signal.

The Consumer Financial Protection Bureau is inching closer to eliminating private payday lending with restrictive new rules and, some advocates hope, paving the way for the U.S. Postal Service to take over these banking services.

The agency’s liberal supporters, including Sen. Elizabeth Warren, D-Mass., long have wanted to replace the payday lending industry with a government-run alternative. Now, they are pushing to include language in the Democratic Party platform to add banking to the line of services provided by the U.S. Postal Service.

The 2010 Dodd-Frank Act granted authority to the Consumer Financial Protection Bureau to regulate and restrict short-term credit providers and payday lenders….

Warren’s expansive vision for a government role in lending effectively would give the Postal Service a banking charter, or as Warren puts it, “nothing fancy, just basic bill paying, check cashing and small dollar loans.”

Supporters of increased regulation claim that short-term credit products trap consumers in cycles of debt by charging interest as high as a 300 percent annual percentage rate.

Yet most payday loans charge simple fees. For example, borrowers are charged a flat $15 fee to borrow $100 for two weeks—an interest charge of 15 percent. The absurd 300 percent rate assumes that a borrower will take out a payday loan every two weeks for an entire year.

Payday lenders have no reason or incentive to bleed their consumers dry. If customers are unable to repay loans, payday lenders will fail….


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3 Comments | Leave a comment
  1. n9zf says:

    Hmm. Let me find my Carnac Swarmi hat…
    I see the future…. Acorn/BLM/yadda-yadda-yadda groups borrow money on their “paychecks” and because of perceived past sins going back to the 1600’s , reparations by a benevolent Hillary are made by forgiving the loans….. easy peasy.

  2. Alain41 says:

    Nationalized banking is the goal. Gee, no reason to audit the fed.

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