Thursday, January 19, 2012

Thoughts on the Payday Loan Ballot Initiative

I just sent the following letter to the Springfield News-Leader:

"I am hopeful that Missourians will learn as much as possible about the "payday loan issue" currently in discussion in many venues around our state. There are valid points to consider on all sides of the issue, and it is important that we give full consideration to the question.

"I believe that I have heard and fully understand the opposition’s point of view, and I remain convinced that 400% interest rates are too high. Simply put, there is no compelling case to be made that charging a struggling family 400% interest (and even higher at times) should be legal. It is time for Missouri to cap those rates.

"Businesses that practice ethical lending need not fear the proposed cap. It does nothing to limit competition among lenders. In fact, it makes the competitive playing field level in that Missouri would no longer be inundated with predatory lenders, and ethical lending companies would therefore have an equal opportunity to do business.

"Most convincing for me is the damage done to families caught up in the cycle of debt, exacerbated by the practices of lending companies that charge triple digit interest rates. The hopelessness in the eyes of parents who literally fear for the health of their children can be quite compelling.

"Please learn as much as possible about this issue, and make an informed choice. Not to decide is a decision in favor of the status quo. And I truly believe the status quo is unjust and must be changed."

I hope that you might visit these sites:

Missourians for Responsible Lending website and Facebook page.

The ballot initiaive summary is here and the full text is here.



Anonymous said...

Find a petition and sign it to get the issue on the Nov ballot. Our Representative, Mary Still, has tried for a few years to get it dealt with in the legislature but people there, some of whom had interests in pay day loans businesses, stopped her and treated her with disrespect. Can't get on the ballot without enough signatures. My husband, Jim Bryan, is treasurer of the group trying to get it on the ballot and he has no doubt that such high interest rates will be illegal if the people of the state can vote on it.

payday loans direct lenders only uk said...

Payday loans are very suspect in the loan market. Many consider pay day economical loans to be the dark-colored lambs of the economical loans. However, these economical loans can fix many problems as they offer resources quick without credit verifications. However there are some uncertainty regarding the use and features of these economical loans and therefore, some explanation is required to prevent neglect.

Instant payday loans said...

Seriously it is quite interesting to read this information on payday loans. It will surely help many. Thanks.

Property Loans said...

Its really a nice informative payday loans post and I know this post is very useful for many people’s.

Alan Mook said...

You can obtain small loans with quick cash via online and complete your financial needs with ease. The sanctioned fund is so much useful to display unexpected financial expenses, medical bills, home renovation, repairing broken window, credit card fees, wedding expenses, unpaid grocery bills, tuition and examination of the charges arrange etc. This includes, you can easily free from financial trauma with ease on these small payday loans.