Center for Consumer Freedom letter in N.H. paper
May 20, 2008 | industry, media coverage | Comments (0)The Payday Pundit missed this from a few days ago, but it’s worth posting. This appeared in a local New Hampshire paper, the SeaCoastonline:
Payday loan firms to vanish?
To the Editor:
If a complete stranger walked up to you on the street and asked you for a $100 loan and promised they’d pay it back in two weeks, but only give you $1.50 for your troubles, would you do it? Of course not.
But that’s what New Hampshire politicians want to mandate short-term lenders do, essentially killing the industry in the state. (“Payday loans may be a thing of the past by next year,” April 20″)
Why is this a bad thing? New Hampshire borrowers who find themselves in a budget crunch will be denied any feasible options for bridging their financial gaps. Without these short-term loans Granite Staters might be unable to make an urgent car repair, pay a heating bill, or avoid a bounced check fee. In fact, a study by economists at the Federal Reserve Bank of New York found that more expensive options like bounced-check fees and Chapter 7 bankruptcy filings rose substantially in Georgia after payday lending was banned.
New Hampshire residents should reject politicians telling them how to spend their money and support increased consumer choice and personal responsibility.
Tim Miller
Center for Consumer Freedom
Washington, D.C.
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