Credit Cards v Payday Loans: Big Banks Dominate DC – Little Guys Get Dominated

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Payday Lender (L) v DC

The following is an examination of yet another specific example of the amazing DC lobbying and messaging differential between the Bigs (Big Tech, Big Banks, Big Businesses of all sorts) – and the Little Guys.

We have been on the Bigs beat for quite some time.  Because the myriad ways in which they warp DC and its policies are often exceedingly favorable to them – and often exceedingly detrimental to their Little Guy competitors and the rest of US.

In this instance, it is the Big Banks and their credit cards – vs the Little Guy payday lenders.

These two products – credit cards and payday loans – exist in basically the same portion of the economy.  Both allow people who don’t have the cash to purchase something – to purchase it.

So in at least one very real sense – the Big Banks credit cards and Little Guy payday lenders are competing against one another.

Both products are great in emergency situations.  When you need to, say, fix your car – to continue working to make money to pay to fix your car.  You can get a payday loan – or charge the repairs.

Payday lenders actually serve many of the poorest people Big Banks will not.  People of very modest income – to whom Big Banks will often not give credit cards – can get payday loans.  So it is the Little Guys – helping the littlest of guys.

Well, when both the Big Banks and Little Guy lenders face bad DC bills?  The lobbying and messaging differential is nearly infinite.   (more…)

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