Letter: Feds do nothing to loan sharks

Monday, Dec. 6, 2004 | 9:04 a.m.

Government used to protect the American people through usury laws that prevented greedy bankers from charging an excessive rate of interest.

Lenders who fund pay-day loans or title loan operations are contributing to the rape of the poor. Exorbitant interest rates are common. This loan-sharking is unconscionable. Shame on the politicians, bankers and lenders who allow this to go on. I worked for loan companies in the 1960s and 1970s that charged nowhere near what is being charged at these unscrupulous operations, and we were called crooks. We were saints by comparison.

There can be the false argument made that it is the consumers' fault for dealing with these "businesses." The reason this is false is that government should reinstate usury laws to make this type of lending impossible.

This is one case where regulation is necessary. Government is supposed to protect people, not allow them to be exploited.

FRANK PERNA

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