Who funds the payday loans and makes the spread between the 1

Sen. Robert Menendez and Rep. John Lewis have introduced legislation which would impose a 100% tax on derivative termination fees to keep banks from seeking to collect on these deals, but banks cannot wait to act.. For most of the 99 percent, there is no difference if rates are 1 percent or 99 percent. In fact, for some Main Streeters, interest rates of 99 percent would be relatively charitable, as payday loans have APRs that often approach 400 percent. Who funds the payday loans and makes the spread between the 1 percent and 400 percent? The rich, of course.

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