Legislators taken to task by NaugBlog
April 28, 2008 | Ohio, industry, positive media coverage, regulation, states | Comments (0)Thanks to David Martin for the hat tip to this great post from the NaugBlog’s Matt Naugle on payday lending legislation in Ohio.
391% is VERY misleading, as pay-day loans are supposed to be PAY-DAY LOANS… Which means an advance on a paycheck from an employer in two weeks. The actual interest rate is 15% (Get out your calculator: $15 is 15% of $100), which is quite reasonable, especially when you consider the risk these companies are taking by giving money to people who need short term loans.
So what will the legislature and Governor do by passing this law? They will decrease the availability of payday loans, which will put more hardships on working class people who might have an emergency need for a short term loan. So this will encourage more use of credit-cards and possibility bouncing checks, both options include hefty late-fees and serious fines.
This is just another example of the growth of the nanny state. The legislature needs to keep it’s grubby hands off of the payday lending industry and stop making more decisions for consumers. People, and not government, should be trusted to know what each person’s financial situation is and people who take out payday loans clearly know they are only for short term emergencies and understand the cost of delaying payment.
And if this law really puts 1,600 stores out of business, then this is one more example of Ohio’s government making Ohio’s business climate more unhealthy than it already is. Maybe if they would stop passing so many stupid laws, then more Ohioans could have better paying jobs and avoid short term emergency loans in the first place?
Comments»
No comments yet.