The present push by payday lenders in an attempt to outflank state regulations is but one explanation Congress has to work on a fresh proposition that will cap rates of interest at 36%.

Modern payday lenders — providing the credit that is high-interest happens to be called today’s loan sharking and that were only available in the 1990s — have found techniques to circumvent state guidelines that prohibit or restrict exorbitant interest levels, sometimes rates outstripping 500%. Read more