Payday loans are literally the only option for the poor for financing small, short term loans. This predatory debt trap directly benefits poverty by confusing loan terms and high interest rates, essentially monetizing the poor.
The solution? Increase the options. Traditional banking companies and the federal government can provide a competitive solution, lowering prices for the borrower and relieving unnecessary debt pressure on the poor.
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Bank of America, one of these spearheads, already offers low-value loans with fixed fees, with no late or overdraft fees. Making small loans readily available on such a large scale is giving payday borrowers a breathing space, especially during the uncertainty of the pandemic. Other banks are expected to follow suit.
The federal government can also provide such loans through the postal service, especially given the established and easily accessible storefronts in areas without traditional bank branches. The Postal Service is expected to implement low-value banking and lending with the cooperation of the federal government, a traditional bank, or both. With more options, payday borrowers can focus on getting back on their feet rather than falling into a confusing debt trap.
Udaykiran Vissa, Saint-Louis
The DeJoy bonus
There is no DeJoy in Mudville to read in your editorial that Postmaster Louis DeJoy at $ 300,000 and over is the highest paid in history and received a “performance bonus” of $ 75,000.
I hope whoever made this stupid decision sent him the bonus check.
Illinois Senator Dick Durbin
Combating violence begins with cooperative civic leadership
Although I agree with Mayor Lori Lightfoot’s response to Ald’s interview with Fran Spielman. George Cardenas that “the root causes of communal violence are deep, complex, and generations in the making”, I did not find Cardenas’ views on crime or leadership to be “misinformed”.
One theory I believe, after 38 years of service as a Chicago police officer in numerous positions across town, is that the crime is co-linked but not caused by the hot weather, the COVID-pandemic. 19 or broken windows. Moreover, “guns, gangs and drugs” are common phrases with no lasting solutions.
Experienced and enlightened civic leadership, including academics, government officials and police officials, is a start. Collectively, they are responsible for policy, police training and morale, and public safety relations with the public. The solutions are clear. Implementation is difficult but begins with collective and cooperative civic leadership.
Richard Guerrero, University Village