Other states ban pay day lending; why not South Carolina?

[The Straight Story]

Other states ban pay day lending; why not South Carolina?

CHARLOTTE, N.C.-- With unemployment rates among the highest in the nation, plenty of people in South Carolina are desperate for quick cash to do something as basic as fix the car to make it to job interviews.

For those who don’t qualify for small loans or credit cards, there’s always the payday lender. But the loans come at a high cost.

The legislative climate in other states is shifting away from payday loans. But not South Carolina.

You won’t see payday lending signs in North Carolina – not since the state banned the practice after a legal fight by the Attorney General Roy Cooper. Cooper fought the lenders for years and later touted his fight in a TV add saying, “We ran off the payday lenders.”

Elsewhere voters themselves took action against the industry. Just last November voters in Arizona and Ohio went to the polls to cap the interest rates of payday lenders despite a TV blitz by the industry. In spite of the industry’s extensive campaign, one man on the street interviewed in Phoenix summed it up: “They’re just a ripoff.”

http://www.msnbc.msn.com/id/29557977/

[Donnachaidh]

1. Georgia's the same -- follow the money

I'm convinced that these payday lenders have been paying off local representatives to allow them to open shop in these states.

[maseman]

2. Ohio didn't ban however we limited

the amount of interest a payday lender can charge.

I don't we should ban them altogether. If they price is right they can help responsible people.

[Catshrink]

3. It's big business here in Arizona.

In Mesa there is one on nearly every street corner -- or two, kitty corner from each other. There was an initiative on the ballot last November to regulate them but I can't remember what happened. They are scum.

[Lost in CT]

4. I'm honestly not sure they should be banned...

It is a bit paternalistic isn't it... We must protect the poor for their own good... they are not very bright, they are like children and don't know any better.

Most people who get payday loans know they are getting shafted. But they also know that if they can't get to work this week cause the car is bust they will be in much deeper shit than a $50 interest fee.


Now people who rent to own tire rims or large screen televisions... that is a whole different breed of stupid.





I think most Payday customers are short and without family who can spot them some cash. I think they are poor a nd desperate but they are not dumb. They have done the calculation and know that the loan is a better bet. Take away that safety valve and some people will be in even more trouble.