Orrin Hatch: “Although the amendment is described as only attacking "payday loans," it imposes new and burdensome regulation on…”

“Although the amendment is described as only attacking "payday loans," it imposes new and burdensome regulation on virtually any company that offers consumer loans, including automobile or truck loans, or that cashes personal checks and charges a fee. It represents an attempt to use Federal law to in effect abolish "payday loans", intruding into an area traditionally reserved to the States. Although lenders who provide "payday loans" are an easy target because the credit they offer is expensive, they in fact provide access to legitimate, short term credit for many poor families who otherwise would be forced to borrow from loan sharks to cover short term emergencies. Some borrowers, particularly poor borrowers, cannot qualify with conventional lenders. For that reason, some States permit "payday" lenders to operate. This amendment would in effect drive payday lenders out of business. It also is vastly overbroad, imposing new, burdensome regulation on many legitimate businesses.”