(Money Before Payday) Lawmakers correct on payday loan cap - Nashua Telegraph
Payday loans are a complex issue, which is why the Senate plans to create a commission to find alternative short-term loan solutions for consumers who need them. The arguments against the cap that there’s a need in the market for short-term loans and that payday lenders will close up and leave the state if a cap is put in place seem reasonable at face value. But they seem less so when considered against interest rates of 500 percent or more on short-term loans for people who can least afford such fees and against the backdrop of the stark economic landscape that irresponsible lending in another industry subprime mortgages has created. Just because payday lenders provide a solution to the problem of running out of money before the next paycheck comes, it doesn’t mean that solution is a good one, a fair one or the right one for consumers or for the economy. It may be that there’s a way that payday lenders can work with legislators and come up with a business model that’s good for consumers and good for their business in the Granite State. Learn more
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