• But in here it's so delightful - thoughts on Obama and the weather
• Protectionism: Everybody stimulate yourself!
• I like the pictures
• Mandela, King, Gandhi... Blagojevich
• Shovels are so 1933
• The cutting edge is nipping at its own tail
• Funny Because It's True (yet again)
• Obligatory Gaza
• Being Reasonable--reaction from the Muslim family recently thrown off a flight by AirTrain
• Won't you be my neighbor?
• Snowzilla
• ZOMG! Radioactive coal sludge will kill us all! (updated)
• Quick points on the auto industry bailout
• Slow and Steady
• Foreign policy and international public opinion

• January 2009
• December 2008
• November 2008
• October 2008
• September 2008
• August 2008
• July 2008
• June 2008
• May 2008
• April 2008
• March 2008
• February 2008
• January 2008
• November 2007
• October 2007
• September 2007
• August 2007
• July 2007
• June 2007
• May 2007
• April 2007
• March 2007
• February 2007
• January 2007
• December 2006
• November 2006
• October 2006
• September 2006
• August 2006
• July 2006
• June 2006
• May 2006
• April 2006
• March 2006
• February 2006
• January 2006
• December 2005
• November 2005
• October 2005
• September 2005
• August 2005
• July 2005
• June 2005

« A Conservative Professor's Discrimination Suit | Main | On Trial for Publishing the Danish Cartoons »

Bad, Virginia Legislators, Bad!

Thus always to Payday Lenders.

As I pointed out a couple of weeks ago, the Virginia General Assembly is tackling the "problem" of payday lenders. I use the quotation marks not to imply that there is no problem, but rather to note that my legislators are not limiting themselves to their proper role in this matter. They first considering a repeal of the Payday Loan Act of 2002, but have since moved toward simply capping the fees lenders can charge for these small short-term loans.

Detractors (and the media) continue to insist on comparing the fee levels to compounded interest, which is not accurate or appropriate. For example,

the House of Delegates [today] advanced legislation that would cap the interest lenders could charge on short-term loans of $500 or less... The rate cap would reduce the interest on a two-week loan from $15 per $100 to $2.77...

As the article notes, the bill is not sure to pass as is. But something will be done, because legislators have decreed that something must be done. They don't even mind that payday lenders may go out of business. In fact, bill supporters are downright flip about it:

"If they can't make money off of 72 percent interest, I think they need to reconsider their business plan," said Helen O'Beirne, a spokeswoman for Virginia Partnership to Encourage Responsible Lending.

At least the General Assembly killed the proposal to outlaw anonymous sperm donation, which I think is a euphamism for one-night stands. I don't know how they planned to enforce that, but I'm sure there are some who would be willing to give it a try.