Do Outrageous Prices Necessarily Mean Outrageous Profits?
An article published in the Fordham Journal of Corporate & Financial Law concludes payday lending fees do not deliver high profits to lenders and advises state legislators to “refrain from acting in haste” when enacting payday lending legislation, stating, “legislators would be wise to carefully consider and study the industry’s explanations of its operating costs and profitability.” The article supports the position that payday advance fees are in line with the high costs of operating a payday loan business. Calling for additional research, the author writes, “If more unbiased information were available, legislators would be presented with a true picture of both payday borrowers and the payday lending industry… This information could lead the payday lending industry and government to cooperative guidelines for providing this necessary service.” Study provided courtesy of Fordham Journal of Corporate & Financial Law.
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- Do Outrageous Prices Necessarily Mean Outrageous Profits?
