From Representative Brad Sherman, (D-Calif.) “So many of the people making the decisions do not ever need a payday loan and don’t understand that you work out the percentage interest rate and isn’t it terrible that you paid $50 to borrow $400? Well, not if it keeps the lights on in your house. Do you know what the fees are to get reconnected? People in public affairs don’t know. People are in the political world always have the $400 to pay their light bill,” he added. [Beginning at 5;30 minutes into this video, Representative Sherman discusses the benefits of payday loans.]
“I think there’s a role for the CFPB in payday lending. At the same time we’ve got to make sure we don’t cut off that – see, people get involved in public affairs because they’re already able to take care of their families and then they say, ‘oh, I have enough extra. I can contribute to the community. I can afford to live on the measly wages Brad Sherman provides in his congressional office.’ The people involved in public affairs are not people who don’t have an extra $700 to fix their car,” Sherman said.
Read the full story at “Credit Union Times.”