tag:blogger.com,1999:blog-10424035.post132421146060001701..comments2023-09-11T08:58:24.710-06:00Comments on Reach Upward: Legal Loan SharksScott Hinrichshttp://www.blogger.com/profile/11831447472339880148noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-10424035.post-21825571743406823622007-05-22T22:09:00.000-06:002007-05-22T22:09:00.000-06:00Two replies: per the DesNews article, the reason ...Two replies: per the DesNews article, the reason they found more violations than government oversight was (according to the DesNews) that their queries were done anonymously whereas government regulators would identify themselves as such at the start of the interaction. It seems to suggest a simple solution.<BR/><BR/>Second, I too am not convinced that low complain levels is, in this instance, a sign of satisfied customers.Tomhttps://www.blogger.com/profile/04486513311176687085noreply@blogger.comtag:blogger.com,1999:blog-10424035.post-48336315861462363312007-05-22T11:38:00.000-06:002007-05-22T11:38:00.000-06:00Tom, you are right that we need to make sure that ...Tom, you are right that we need to make sure that any step we take is calculated to produce the desired result while minimizing negative side effects, since there are negative side effects anytime government intervenes.<BR/><BR/>In that respect, I suggest that the task force that is studying this needs to get information on the effects of the payday lending regulatory practices of other states to get an idea of what works, what doesn't, and the negative impacts of each type of restriction. Only armed with that kind of information can a decent proposal be structured.<BR/><BR/>Also, if we are failing to enforce existing laws and regs, we need to determine why that is. Are they unenforceable? Is the agency tasked with enforcement understaffed or is this simply a low priority for them? This falls in the Governor's court. He ought to remedy enforcement problems and demonstrate bad policy to legislators so it can be changed.<BR/><BR/>Steve Urquhart (among others) has blasted the industry's contention that low complaint rates mean that they are doing a fair job. Most of these people feel trapped. They don't see how complaining is going to help them, since they would have to demonstrate that rules have been violated. Many are ill equipped to do that. Also, see my quote of Urquhart's comments about the nature of the victims he has seen come through the state courts. Lack of complaints is not necessarily a stamp of approval.Scott Hinrichshttps://www.blogger.com/profile/11831447472339880148noreply@blogger.comtag:blogger.com,1999:blog-10424035.post-53112989325200968542007-05-22T10:31:00.000-06:002007-05-22T10:31:00.000-06:00Good article. (Thanks for the link. ;)In another ...Good article. (Thanks for the link. ;)<BR/><BR/>In another DesNews article in the same series as you linked to, the paper found annualized interest rates ranging from 365% to 912%, with a median of 521%. Horrific, in my mind.<BR/><BR/>The part your missing though (and it's been missing from most discussions): What specific regulations would make a difference? Interest rate/fee caps? Required informational pamphlets in multiple languages, suggesting other options, and showing where to direct complaints? (Payday lenders cite the extremely low number of complaints to government oversight. Perhaps those uninformed enough to use a payday lender are similarly uninformed regarding government channels?)<BR/><BR/>The same DesNews series suggested that existing rules weren't being followed. Would additional enforcement help?<BR/><BR/>Asking for additional oversight is well and good--I agree with you. How, specifically, should it be accomplished?Tomhttps://www.blogger.com/profile/04486513311176687085noreply@blogger.comtag:blogger.com,1999:blog-10424035.post-3983268175070137072007-05-22T06:12:00.000-06:002007-05-22T06:12:00.000-06:00I heartily agree that government regulation of ind...I heartily agree that government regulation of industry is vital to the interests of the citizenry.<BR/><BR/>In this case, we have an industry whose <I>raison d'etre</I> is dubious at best. The market for their services is caused by the combination of low wages, high housing costs, and the constant pressure to buy things one does not need with money one does not have (advertising). Perhaps if we had stronger government regulation in other areas, the market for exploitation of the poor by usurers would dry up.Charles Dhttps://www.blogger.com/profile/02975241234146573609noreply@blogger.comtag:blogger.com,1999:blog-10424035.post-61373682935849446812007-05-21T19:24:00.000-06:002007-05-21T19:24:00.000-06:00It's amazing how some industries can be perfectly ...It's amazing how some industries can be perfectly fine with a minimum of controls (i.e. Internet service providers and computer manufacturers) whereas others end up either establishing a de facto or de jure monopoly or engage, willingly or unwittingly, in industry-wide collusion (telecommunications, payday loans, etc.). When an industry falls into the latter category, it works to suppress the free market and ends up being rightly subjected to regulation to correct that course.<BR/><BR/>The payday loan industry has reach a point of massive collusion, albeit intentional. They all sell the same product for more-or-less the same rate and an increase in the number of businesses in the industry has increased prices instead of decreasing them. Indeed, more entrants into the market has resulted in less favorable conditions for the consumer.<BR/><BR/>That's what I've never figured out about most free market die-hards: they never want to talk about what to do when it is a company rather than the government doing the suppression of market forces.Jesse Harrishttps://www.blogger.com/profile/11468928702710912142noreply@blogger.comtag:blogger.com,1999:blog-10424035.post-52895897940328998342007-05-21T16:33:00.000-06:002007-05-21T16:33:00.000-06:00As a general rule, I am all for the free market. ...As a general rule, I am all for the free market. However, this just seems to be such a predominant problem. However, I wonder if it wouldn't be better controlled at the city or county level by limiting the number each city can have. Or having a city that eliminates the service in their city. However, I don't know that I would be opposed to stronger state regulation on the industry either. Even though it goes against my general rule in favor of the free market.Anonymousnoreply@blogger.com