This is what's wrong with electing Utopia seekers:
Senior officials at the Federal Deposit Insurance Corporation actively sought to crack down on legal businesses that the Obama administration – or the officials themselves – deemed morally objectionable, a new congressional report finds.I, by the way, agree that payday lenders are scum. They take advantage of people in desperate situations. (and the stupid, and those with no math skills) They're bums, and put one at my table, I'll go sit somewhere else. But we have usury laws. And we are a nation of laws.
Released today by the House Oversight and Government Reform Committee, the 20-page investigative report details how the FDIC worked closely with the Justice Department to implement Operation Choke Point, a secretive program that seeks to cut off the financial lifeblood of payday lenders and other industries the administration doesn’t like.
The FDIC is the primary agency responsible for regulating and auditing more than 4,500 U.S. banks.
Emails unearthed by investigators show regulatory officials scheming to influence banks’ decisions on who to do business with by labeling certain industries “reputational risks,” ensuring banks “get the message” about the businesses the regulators don’t like, and pressuring banks to cut credit or close those accounts, effectively driving enterprises out of business.
If a payday loan company is abusing consumers, you make laws to limit APR, or deceptive practices, or whatever. Then enforce those laws.
And by the way, I don't see the Government of the Light getting upset at banks whose Visa cards shoot up to the 20-30% APR range if a single payment is late.
It's even more reprehensible for the Administration to wield the big nasty IRS club against its political "enemies", but these guys see themselves as above the law. Thank goodness we've started voting them out.