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Payday Loan Laws May Be Suject To Constitutional Attack

Date: Wed, 10/18/2006 - 18:05

Submitted by anonymous
on Wed, 10/18/2006 - 18:05

Posts: 202330 Credits: [Donate]

Total Replies: 5


There may be hope. An Alabama trial court struck down Alabama's PAwn Shop Interest Rate Under the Equal Protection Clause.

The State trial court said that the law discriminated against other lenders who could not charge such large interest rates.

This same Constitutional argument could be raised against every Pay Day Loand Law in the Country.


RW, just a thought..............The point in changing the law is because these companies are taking advantage of those who are limited in their credit choices (could be due to bad credit, low income, or no credit history at all), whatever the individual's reason for being credit limited is really of nobody's concern, it is a private matter, the point is this....They exploit and take advantage of them when in vulnerable/desparate situation due to the lack of choices by charging outrageious interest rates and in the case of internet pdls, illegal interest rates/roll overs. And it sounds as if you are blessed with being in a financial situation that prevents you from utilizing these services in the time of need, but that doesn't give you the right to place judgement on those who are unable to pay on time. It is impossible sometimes to pay these off due to the high interest rate charges, internet pdls make it impossible to contact them to pay off the loans, etc......So it is necessary to pass laws to protect consumers from these loan sharks.


lrhall41

Submitted by WHEREAMI? on Thu, 10/19/2006 - 02:48

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