2009.01.02
Payday lending
Virginia's new rules for payday lenders took effect on Jan. 1. Some people have placed them among the toughest rules in the nation, but they are actually a tepid response to predatory lending from lawmakers unwilling to act. Even worse, lenders have already found a way to circumvent the law and continue exploiting Virginians in financial trouble.
We're writing an editorial that will run next week about the new rules and what must now be done to protect Virginians.
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While I don't believe that it is right, the way I see it, though, is that they are offering a service that people want.
If you don't want to take out a loan with that type of interest rate, don't. The fact of the matter is that nobody is going to offer it for less, and as long as there is a market for it, they will continue to offer.
It is a free world, you may choose whether or not you wish to take out one of those loans. If you do, good for you. If you don't, good for you.
If everyone doesn't, they won't be on every corner.
Comment by Jack — January 2, 2009 @ 5:49 pm
That sounds oddly like the adage "It's OK to put poison in baby food if there is a warning label on the package".
Comment by Henry — January 3, 2009 @ 8:37 pm
Why don;t we just legalize loan sharking and make sure they advertise their exhorbitant interest rates, fees, and penalties for not paying up when the time comes. Oh wait, that's the payday lending/title loan industry. My mistake.
Comment by Other John — January 3, 2009 @ 11:07 pm
But it isn't okay to poison baby food. That is just wrong regardless of how you look at it.
However, if I make an agreement with you to loan you $200, but you must pay me back $400, I don't see a problem with that. You are welcome to walk away from it.
If you want the money bad enough you have two choices... get the loan from me, or get it elsewhere. Nobody is forcing you.
Comment by Jack — January 4, 2009 @ 11:22 am