News : Easy Payday Loans in Georgia
A reasonable law on payday loans
July 16, 2008
David Martin of Hampton writes erroneously that a bill signed last week by Gov. John Lynch eliminates payday loans in New Hampshire ("State has forced me out of business," Monitor letter, July 12). In fact, the bill caps these loans at 36 percent, because too many shops were offering payday loans at 500 percent and up.
It is unfortunate that Mr. Martin has to close his business, but the blame shouldn't be placed on Gov. Lynch or the Legislature for passing reasonable restrictions on these loans. Banks and other financial institutions must conform to federal and state usury regulations.
Bank loans and credit cards at triple-digit rates would be the subject of investigation by regulatory bodies. New Hampshire's legislation came about because the payday lending industry targets people who lack access to traditional resources and become desperate when a financial crisis comes along.
To Mr. Martin's customers who ask why his store is closing, an accurate response might be that he cannot run a lending operation profitably on 36 percent (or less) loans, as many other financing institutions are able to do.
To those who ask what they will do when they need money to meet their own needs, I would hope that folks are aware of such free and low-cost services as those provided by Consumer Credit Counseling of NH/VT, UNH Cooperative Extension and Casey Family Services, among other nonprofit organizations.
Those who qualify for the Earned Income Tax Credit can also get an advance without waiting until next tax season that can give them up to $140 per month added to their paycheck.
Source : http://www.cmonitor.com
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