Question

The Blasco case involved a payday loan, for which she was paying 6,500 percent interest. Some states outlaw such loans or heavily regulate the interest rates. Should the law permit these loans?

Answer 1

The Blasco case involved a payday loan, for which she was paying 6,500 percent interest. Some states outlaw such loans or heavily regulate the interest rates. Should the law permit these loans?

I think that the law should be able to permit these loans because just like the word said “payday

loan” which refers to when the person would get paid for their job. Also when you are going to be

borrowing money to try to get by until your next paycheck, there will be a high interest rate that will be

attached to the loan. The reason why for this is because they want to insure that you are going to be

paying back the loan that you took out at the time you stated. I just feel that if they were desperate to

take out the payday loan that they would know that there will be a high risk that will be attached to the

loan if they don’t pay it back on time. I feel that this is a good way to make sure that the people who

give out the loans get their money back. The people who gives out these loans are not big corporations,

these are small business that gives out these loans. They just want some insurance that they will be

getting their money back