I very much doubt that “over 60 percent of payday loans go to borrowers with 12 or more transactions per year and 24 percent of payday loans go to borrowers with 21 or more transactions per year.” But whatever the percentages are, prohibiting such people from exercising their freedom of choice might do them more harm than good.
What would definitely help would be if payday lenders could also offer short-term installment loans and, for those who qualify, long-term installment loans. Not only could installment loans be offered at a lower APR but they would also save such customers the stress of repeated trips to the store.
Nevertheless, the traditional payday loan still would be the best choice for many people. Short-term loans save consumers money because, despite the relatively high APR, interest is only paid for a short period of time. Short-term loans also encourage frugality as borrowers are reminded of the need the repay the loan soon, whereas long-term loans which only require small payments tempt people to have several loans outstanding at the same time. That is why so many people have multiple credit cards and end up having to file for bankruptcy.
Payday Loans are a fee based business not interest. When a person takes out a loans it is clearly disclosed the fee for the service. No person is told they have to take a loan it is their choice after seeing the disclosed rates. These rates are actually cheaper than bouncing a check getting behind on a bill and paying late fees. The fees are actually lower than an atm fee to have access to your own money.
States already regulate this industry and by passing this legislation the Fed Government is saying that the states can’t take care of their own.
How bout regulating the big credit card financial institutions instead. They’re the ones charging us a arm and leg with high interest and late fees! Why pick on the little businesses? They didn’t cause the financial meltdown and why do they have to take the brunt of the storm. Rediculous law. We shouldn’t be told how to handle our money and how to spend it! A lot people are going to lose their jobs! Just like a typical senator. Always working for the big corporations and rich people. All we here is blah blah blah
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I very much doubt that “over 60 percent of payday loans go to borrowers with 12 or more transactions per year and 24 percent of payday loans go to borrowers with 21 or more transactions per year.” But whatever the percentages are, prohibiting such people from exercising their freedom of choice might do them more harm than good.
What would definitely help would be if payday lenders could also offer short-term installment loans and, for those who qualify, long-term installment loans. Not only could installment loans be offered at a lower APR but they would also save such customers the stress of repeated trips to the store.
Nevertheless, the traditional payday loan still would be the best choice for many people. Short-term loans save consumers money because, despite the relatively high APR, interest is only paid for a short period of time. Short-term loans also encourage frugality as borrowers are reminded of the need the repay the loan soon, whereas long-term loans which only require small payments tempt people to have several loans outstanding at the same time. That is why so many people have multiple credit cards and end up having to file for bankruptcy.
Payday Loans are a fee based business not interest. When a person takes out a loans it is clearly disclosed the fee for the service. No person is told they have to take a loan it is their choice after seeing the disclosed rates. These rates are actually cheaper than bouncing a check getting behind on a bill and paying late fees. The fees are actually lower than an atm fee to have access to your own money.
States already regulate this industry and by passing this legislation the Fed Government is saying that the states can’t take care of their own.
How bout regulating the big credit card financial institutions instead. They’re the ones charging us a arm and leg with high interest and late fees! Why pick on the little businesses? They didn’t cause the financial meltdown and why do they have to take the brunt of the storm. Rediculous law. We shouldn’t be told how to handle our money and how to spend it! A lot people are going to lose their jobs! Just like a typical senator. Always working for the big corporations and rich people. All we here is blah blah blah