Virginia Activists Up In Arms Against Lenders
Consumer advocates recently urged legislators to limit high-interest, short-term payday loans to the same 36 percent annual interest rate cap that applies to other lenders in Virginia. However, representatives of the payday loan industry were not too happy with the suggestion. They said such action would force them out of business, denying cash-strapped borrowers a convenient source of credit that can be less expensive than fees for bounced checks or late credit card payments. Dailypress.com reports:
"People end up simply servicing their debt while never being able to retire the principal," Neil Walsh, a lobbyist for AARP Virginia, told the House Commerce and Labor Committee. "This is not financial assistance–this is financial disaster."
Read more: Legislative panel hears payday loan debate
November 15th, 2006 at 9:19 am
I was disturbed the hear of the effort underway to close down businesses that provide small loans to minimum wage working people. Many of the people who use and rely on these businesses are people that the banks DO NOT consider “a good risk” . For many low and low-middle income citizens like myself, the PAY DAY LOAN service is an invaluable resource to rely on and turn to in times of emergency need.
The small loan or PAY DAY LOAN, helps bridge gaps for many of us. I am a user of these services and I am strongly opposed to the effort underway to close them down. Because I can go to an ACE establishment to borrow money, (up to $500.00 if I need it), I do not have to go to friends and relatives. Because ACE is there for me, I am spared the embarrassment and humiliation that borrowing from friends and family causes. Because of ACE, I am able to handle and take care of my business, without bringing friends and family into it. To take away this resource for obtaining “extra cash” or “emergency money” would be cold and heartless, and drive even deeper the chasm that exists between the “haves” and those of us who have not.
As a user of the PAY DAY LOAN service, I cannot help but wonder WHY my government has not intervened in some way to place a levy on at least SOME of the money that gets wired to other countries from businesses like ACE and WESTERN UNION. To tell me that you cannot “tax” money that has already been taxed is a cop out! If you can strive to change laws that govern the state of matrimony, you can levy a tax on “exported, made in America money” going out to other countries. If you can tax money left to an individual in a will you can levy a tax on money that is earned in America and sent out of the country.
I don’t know what is happening to this country. The rich are getting richer while those of us who struggle for a dollar are being asked to make bricks out of straw! As an elected official YOU NEED TO REPRESENT THE PEOPLE THAT ELECTED YOU! PLEASE DO NOT SUPPORT THIS EFFORT TO CLOSE THE SHORT TERM LOAN ESTABLISHMENTS. THEY PROVIDE A NEEDED AND VALUABLE SERVICE. INSTEAD OF TRYING TO CLOSE THEM DOWN THE GOVERNMENT SHOULD BE TRYING TO WORK WIOTH THEM FOR THE BENEFIT OF THE PEOPLE.
Please recognize and consider how YOU vote on this matter will determine how “WE” vote in the next election!