Alternatives to Payday Lending
Thursday, March 20th, 2008 By Marc KilmerThe Dayton Daily News story on payday lending illustrates a few important points about this issue:
Payday lending is popular. There are a fairly high number of stores throughout the Columbus area and the rest of Ohio. These stores can only be opened if there is a demand for their service. While payday lending may not be popular with some in the state, it is certainly popular with many people who use these businesses every day.
Market alternatives to payday loans are arising. Credit unions are beginning to offer short-term loans at lower interest rates. That is exactly what you would expect with both the popularity and profitability of short-term loans.
Some politicians want to short-circuit the market. Even with the market alternatives to these loans arising and the continued popularity of payday lending among borrowers, some politicians continue to think they know better than borrowers and are pushing for legislation to outlaw these loans.
Politicians should focus on more important issues (perhaps Ohio’s anti-business tax code) and leave payday lending alone. No one is forced to take a payday loan. Those who do take these loans view the costs as worth the benefits. Enterprising businessmen are finding ways to offer lower interest short-term loans to those interested. That’s how the market works. It is the height of paternalism for politicians to step in and try to interfere in this market because they think they know best.
Tags: Regulation
March 25th, 2008 at 9:56 am
This is the same group trying to jam another scratch off lottery game down our throats every couple of weeks,or even KENO.The fact is America is the greatest country on this planet for our freedoms and the freedom we have to choose and make up our own minds is what I love most about our country.So batchelder hagan and who ever else that wants to take away these freedoms because a so called advacacy group is giving them a healthy kick back.I take offense to that I also find it very hippocritical that a man Bill Batcheleder who took money from big banks oil companies and insurance giants wants to point the finger at payday lending as the problem in this state for financial heartache.Let freedom ring true and let the market decide the fate of payday lending!Not some outta touch politicians