Should payday loans be outlawed?
August 30, 2010 | positive media coverage | Comments (1)A California state senator answers the question emphatically in a Washington Informer guest piece:
Traditional banks are allowed to hold government deposits where they pay minimal interest rates and make a sizeable profit. And as we have seen if the traditional bank makes a bad decision the government bails them out. So if those concerned offer no solutions, don’t close the door on the last hope for those locked out. While the poor and credit-challenged appreciate your sympathy, if you can’t help, don’t hurt.
Comments»
This past weekend I paid $3 to a store ATM so I can get $40 out of my own money! But I am not complaining.
The point is lack of options is what led me to go to a store ATM to get cash out when I needed it. So in fact I appreciate the fact that someone put an ATM there in middle of nowhere to help me out. $3 is a bit too high but it did help me out.
It’s the same deal with payday loans and other type of short term loans. People take them, because they under employed and they have problem with cash flow but they lack option. And banks aren’t lending these days, they are in fact taking money away from people in all sort of way. So people go with payday lender.
I would really hope State and Federal politicians would promote responsible payday lending, instead of continue threatening of banning it. And I wish they would put more focus on creating jobs so people would be less reliant on payday loans or any type of loans.