A payday loan in South Carolina sounds fine
South Carolina’s The State newspaper reports that recently introduced payday loan legislation has made it to the state House for debate. Changes were not recommended beforehand, which is a positive sign for payday loan supporters.
To recap, the bill would limit consumers to no more than one cash advance at a time, up to $600 dollars. Plus, lenders would have to cross-reference customers against a state database to see if they have loans outstanding. Finally, a set portion of loan fees would go toward maintenance of the loan database.
A decision soon?
The bill, which enjoys the support of more than 70 House members, should reach a vote soon. Debates are scheduled to begin the week of February 9.
Critics continue to complain that the bill doesn’t require a cooling off period or limit the number of consecutive payday loans a customer in South Carolina may take. However, faxless payday loan employees are encouraged to work with customers and inform them about responsible use of the loan product.
Shouldn’t people be allowed to choose for themselves whether a payday loan is right for them? A “nanny state” mentality on the part of government is neither desirable nor productive for the population.
Hey – say what you will, at least they’re willing to work with lenders to keep them in business. Granted, it really isn’t, and shouldn’t be, up to Big Brother to let us know what’s good for us, but at least they aren’t just running them out wholesale. It’s good for business in South Carolina to keep people employed, and it’s also good to keep them from getting foreclosed on, which some people avoid by getting payday loans.
Perky has made some good points and I would agree with the statements alread made.
Personally, I think the number of payday loans (or any other form of loans) that payday advance consumers can take out should be limited. Payday loans are not the cause of “cycle of debt” that many claim to be. People who jump into poor financial decisions without taking a slim moment to analyze the fiscal issue are responsible for their own financial crisis. Payday loans are not designed for long-term usage and people who obtain this product must fully understand the terms and conditions before proceeding with the loan. Otherwise, they shouldn’t complain or make up a sob story to gain sympathy for their petty financial dealing.