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Yes, everyone is so happy to boycott --- but then why not boycott these loan sharks?
In many cases. because boycotting them entails other costs, which sometimes are greater and/or can lead to a cascade of difficulties. In a worst case scenario, not taking out a payday loan and consequently not paying the rent on time could lead to eviction or non-renewal, which can lead in turn to homelessness etc.
If lender and borrower can agree on terms gov't should get out of the way, according to standard economic analysis. I find it interesting that when it comes to usury laws, libs reject the science and instead fall back on the religious-derived dogma
And how do these economists regard restrictive, exclusionary, and redistributive zoning laws - which inflate the cost of housing?
Even Thomas Sowell, an honest conservative, demonstrated that zoning redistributes income from renters to homeowners and thus generally upward. How many people gave taken out payday loans because the rent is 2 damn high? If landlord and tenant can agree on terms and conditions, shouldn't government get out of the way?
Econ 101 does not necessarily assume perfect knowledge. It just assumes rationality, which I think is a fair assumption. One buddy of mine who had pawned his shotgun advised me: if you can possibly avoid it, don't pawn your stuff, they charge an arm and a leg. Another buddy going through a divorce asked me for a $400 loan so that he could avoid going to a payday lender, which he realized should be avoided at all costs. I assure you that neither of these were rocket scientists.
For some people borrowing from a payday lender might be preferable to borrowing from a friend; there are different risks and costs to each. I find it intriguing how high borrowing costs are for poor people seeking short-term small loans, even when those loans are secured. What does Econ 101 say about that?
This one is too funny. Obama appoints a bunch of wall street crooks to rape the nation and liberals are perfectly fine with that but get all upset about Texas. Let the folks in Texas worry about it. Just amazing the mind of liberals.
??? Have you ever been poor? Have you ever had an unexpected expense you couldn't immediately cover, yet needed to be paid right away? Like what do you if your car breaks down and you need it to get to work but you don't get paid until next Friday? Or the rent is due in two days and you don't get paid until next Friday? Let's say you're a landlord - how would you deal with someone who CHOSE to pay you late rather than take out a payday loan?
Yes I've been poor but if my car broke down and I couldn't fix it, there was the bus or my bike. I've paid rent late, I just told the landlord when I was going to be paid and then made sure I had it all on time the next month.
I've never understood these payday loans or pawn shops -- but there's tons of both where I live.
Governor Perry hired the Vice President of Cash America as head of his payday loan consumer watchdog agency. Wendy Davis of course is calling for his resignation.
William J. White, the official who oversees Texas' consumer watchdog, says payday-loan customers - not the lenders - are responsible when the loans trap them in a cycle of debt. White says it's out of line to even question an industry that has had its practices called exploitative by many critics. White was appointed by Gov. Rick Perry to chair the state agency that oversees the Office of the Consumer Credit Commissioner, which is responsible for protecting consumers from predatory lending practices.
I guess the miserably poor are incapable of making their own decisions. I guess just like the senile and children they should not be able to enter into contracts.
Yes, except that's the liberal view of EVERYONE. We're all just little stupid children who can't think for ourselves but must have daddy politician or mommy politician decide everything for us. They're there to take good care of us..... yeah right -- but they seem to be getting quite rich themselves somehow.
Definition:
usury is the practice of making unethical or immoral monetary loans.
So of course you're all for it right?
Sigh. Theres a lot of economist that argue usury is bad as well.
So in whose bible does it say where you draw the line? If you charge 4% is that "moral" but 10% is a sin? And yes, usury is a religious concept.
If you don't believe in God or religion then how can you say the payday loan owners are committing some kind of sin or are immoral? By whose moral code are you judging them? The Universe doesn't care.
Sigh. Soooo....lets say a payday loan place says you owe then $.23. They then take you to court, slap a $1,500 fee for their lawyer to file the case (lawyer ALSO happens to be the president of the company-and the case is a simple form with filled in names created in .5 seconds from a computer). And if you actually go to court to contest it theres more fees, PLUS that $1,500 is put against you at the 400% interest rate. All of this buried in the fine print and legalise.
And....you think thats OK?
Mind you-this is not a hypothetical question BTW.....
What I've seen that is harder on people and why many of them might need these payday loans are traffic tickets. Maybe they get pulled over for not having current license plates or safey inspection sticker or they forgot to put their seatbelts on or make a full stop at a stop sign.
Now they have a big ticket to pay. If they don't pay it, the fines go up. They really can't pay it now. So now they get a notice there's a warrant for their arrest and they need one of these loans.
Or the federal government is getting them for back taxes and fines.
It's probably the big government in the first place that is to blame.
This guy probably will crack down on payday lenders.....his competitors.
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Wendy Davis of course is calling for his resignation.
