In your view which of the following statements are correct and which are not? Please explain your points of view:

1. Payday loan shops are not classified as banks, so they fall outside laws the state usury laws that prohibit super high consumer loan interest rates. Most customers do not know what is the true interest that they are actually paying (the longer the loan, this higher the effective interest rate).

2. With the official inflation rate hovering below 2% on annual basis, how do credit card issuer get away with charging their interest rates? Would you consider credit card interest in the range of 12% to 24% a legal consumer rip-off?

3. With the official inflation rate hovering below 2% on annual basis, how do credit card issuer get away with charging their interest rates? Would you consider credit card interest in the range of 12% to 24% a legal consumer rip-off?