Should PayDay Loans be regulated?

[AlexMerced]

http://www.youtube.com/watch?v=4FUpmNcAfsc

[luisOlsen]

It should be to prevent people from getting too much debt.

[oyarde]

No Alex , here is why , it makes no difference , if you restrict them and shut them down , others will step forward and , probably do about the same , or worse . What solves these problems / Govt getting out of business , then there would be more oppurtunity for people not to need it . Problem solved . I usually get a small fee for this :)

[Trigonx]

I know Wisconsin has laws on the book regarding payday loan stores.


The Democrat-controlled Legislature passed the law last session, which stops short of banning payday lending in Wisconsin. Instead, the law:

- Caps borrowing at $1,500 or 35 percent of a borrower’s monthly income, whichever is less
- Prohibits rolling over loans more than once
- Creates a database to prevent people from borrowing from multiple lenders
- Sets limits on where lenders can operate and how many can operate in a given area.

In addition, outgoing Democratic Gov. Jim Doyle used his veto pen last summer to include a provision outlawing lenders from using a borrower’s car title as collateral for a loan.

http://statehousenewsonline.com/2010/12/30/payday-loan-limits-headline-new-2011-laws/

And around here in Wisconsin we had a few 24/7 payday loan places, but now a law restricts that and have to close during the late hours.

[TonySutton]

The government is not our Mommy, Daddy or babysitter. There is no reason to regulate these places. Any fraud or breach of contract can be handled in court between the 2 parties.

[The Goat]

I know Wisconsin has laws on the book regarding payday loan stores.



http://statehousenewsonline.com/2010/12/30/payday-loan-limits-headline-new-2011-laws/

And around here in Wisconsin we had a few 24/7 payday loan places, but now a law restricts that and have to close during the late hours.

The government didn't like it so they turned it over to the black market.

[Jordan]

Give kids a proper education in personal finance in public schools and you won't need to regulate payday loan lenders, as they probably wouldn't exist.

[VBRonPaulFan]

Give kids a proper education in personal finance in public schools and you won't need to regulate payday loan lenders, as they probably wouldn't exist.

+1, people who aren't morons and have the slightest clue about how to manage their finances will never ever let themselves get to a point where they need money this badly. complete rip off, they take like 1/5 of your paycheck so you can get it a week or so early.

[JorgeStevenson]

Stossel had a segment on payday loans on one of his specials. Basically, the people who get payday loans know they're getting a raw deal. They just have a short-term money issue and the bad deal is worth more to them than no deal at all. We all fall into hard times one way or another - it's better to have places like this freely available to use in emergency situations.

[jmdrake]

Get rid of the federal reserve and it all goes away anyway.

[The Gold Standard]

No they absolutely should not be regulated.

[ILUVRP]

there is a risk /reward ratio with everything , i would not want to be in a payday loan business , way too much risk .

no regulation on them .

[JebSanderson]

Thread title does not make sense.

[awake]

No. Interest is not evil. It serves a critical market function: the price you pay for money now vs later - right now has a price. The idiotic attempt to abolish interest by government has been the single most disastrous collective mental illness to infect the human mind. It isn't any wonder it is an ongoing duty of the government to try and defeat it.

[BlackTerrel]

Isn't this the same as certain drugs or cigarettes or french fries? We know they're bad but in a free society adults have the right to harm themselves.

[TheBlackPeterSchiff]

No, If it wasn't for Payday loans there would have been many times in the past my rent wouldn't have been paid or I wouldn't have had money to eat. Sure, they have loan shark interest rates my I also had terrible credit from years of bad money management. I do hate the fact that you see so many Payday loan places in low income areas and I do believe they hunt down uneducated and financially illiterate and desperate people, but banks sure wont lend to those people so we have no choice. At the end of the day a sacrifice will have to be made at some point so it really doesn't matter. Do it now or do it later. I have no problem with them.

[LibertyRevolution]

I have a very low opinion of payday loan places..along with any business that profits off others misfortune.
They will loan you money at 35%... The local bookies loan shark only charges 30%...
So, I guess if your gonna pay it back.. your better off going through a black market loan shark.
Only difference being that the payday loan place wont brake your legs if you don't pay..

Should they be unregulated? YES. Buyer beware.

[AlexMerced]

For those wondering about the OP in the video I made the case why Payday lenders shouldn't be regulated.

[DEGuy]

http://www.youtube.com/watch?v=4FUpmNcAfsc

Q: Should PayDay Loans be Regulated?

A: No.

[Gideon]

Should Thread Titles being edited?

I couldn't resist, and now I will start reading this thread...

[Liberty74]

Payday loans are already regulated to an extent depending on what state you are in. I actually interviewed for a management position with one in KY back in 1997. The KY government stepped in and put a 15% max interest on repayment. According to the lady I interviewed with, the business boomed because of that new law. I wonder why? LOL

[Paul Or Nothing II]

It should be to prevent people from getting too much debt.

Sure, & government should "regulate" how much & what people eat, you know just to prevent people from getting too fat & unhealthy! :rolleyes:


No Alex , here is why , it makes no difference , if you restrict them and shut them down , others will step forward and , probably do about the same , or worse . What solves these problems / Govt getting out of business , then there would be more oppurtunity for people not to need it . Problem solved . I usually get a small fee for this :)

Exactly, if only "do-gooders" understood this! :D


Give kids a proper education in personal finance in public schools and you won't need to regulate payday loan lenders, as they probably wouldn't exist.

Proper education? In public schools? Good joke! :rolleyes:


Get rid of the federal reserve and it all goes away anyway.

It has nothing to do with Fed, they would probably exist under gold-standard too if there's demand for it!

Seriously, some people have become so pre-occupied with Fed & "evil bankers" that they can't seem to think of anything else, I'm sure even if Earth were to be hit by an asteroid, they'll even blame that on the Fed! :D

Seriously, talking about Fed is GOOD but being paranoid with it is NOT; it will repel new people from looking into the liberty-movement if they think that Fed, Fed & Fed is all that we're about


No. Interest is not evil. It serves a critical market function: the price you pay for money now vs later - right now has a price. The idiotic attempt to abolish interest by government has been the single most disastrous collective mental illness to infect the human mind. It isn't any wonder it is an ongoing duty of the government to try and defeat it.

+1

I'm always glad that Mises is around to point out the facts :)


Isn't this the same as certain drugs or cigarettes or french fries? We know they're bad but in a free society adults have the right to harm themselves.

+1


No, If it wasn't for Payday loans there would have been many times in the past my rent wouldn't have been paid or I wouldn't have had money to eat. Sure, they have loan shark interest rates my I also had terrible credit from years of bad money management. I do hate the fact that you see so many Payday loan places in low income areas and I do believe they hunt down uneducated and financially illiterate and desperate people, but banks sure wont lend to those people so we have no choice. At the end of the day a sacrifice will have to be made at some point so it really doesn't matter. Do it now or do it later. I have no problem with them.

+1


Payday loans are already regulated to an extent depending on what state you are in. I actually interviewed for a management position with one in KY back in 1997. The KY government stepped in and put a 15% max interest on repayment. According to the lady I interviewed with, the business boomed because of that new law. I wonder why? LOL

+1

:D

[helmuth_hubener]

if you restrict them and shut them down , others will step forward and , probably do about the same , or worse.
There are many who feel these loan providers are bad (as you say, "or worse," implying the payday loan places as they are already are bad), but nevertheless have the right idea in understanding that the State should not be involved.

I am one step further down the spectrum. I think, obviously, that the State should not be involved. I also think that payday loan establishments are exemplary market actors, heroically providing an urgently-needed service to their fellow men. Their customers are poor, their customers are bad with money, their customers are low class, their customers have no pull nor influence in the political establishment. Thus, the political establishment feel they have a free hand to mess up the lives of these poor, irresponsible, low class, lobbyistless commoners. Usually they do so in the guise of actually helping said commoners! That's how much gall they have! And they usually get away with it and people take their stated motive at face value! And, further, even expect that it will help!

Look, if people are patronizing payday loan places, that means that they are being benefited by these places. The people's lives are better as a result of the existence of the payday lenders and the business they do with them. To the extent that this mutually-beneficial activity is regulated, limited, or prohibited, the commoners' lives is made worse.

Don't the poor have enough problems without the State driving out the few heroic businessmen who are working to make their lives better?

[helmuth_hubener]

We know they're bad but in a free society adults have the right to harm themselves. These free adults have a right to help themselves! Idiotic meddlesome busybodies should sit on their hands and mind their own business. Giving loans to extremely high-risk, low income people who are very likely to be deadbeats is a tremendously heroic activity.


I do hate the fact that you see so many Payday loan places in low income areas and I do believe they hunt down uneducated and financially illiterate and desperate people,Do you hate the fact that there are so many soup kitchens in low income areas? Does it burn you up to see blood banks focusing their efforts in places with lots of people needing blood, like hospitals, ruthlessly hunting down surgical patients and other desperate people?

The "desperate" people are desperately in need of exactly what these payday lenders are providing! How does it help the desperate among us to harass or hamstring the one group of folks actually trying to help them? Craziness!

[MelissaWV]

Screw it.