This article in Seatle Weekly prompted me to write this. I think the state would be better off creating incentives for people to create saving’s accounts than making payday loans tougher to get. These legislative sessions are a joke. What’s the point in making lenders miserable over frivolous laws?
These law makers are trying to save a small percentage of borrowers, through the legislative process, that are just looking for a bailout.; but what’s new in this country.
The more legislators feel sorry for people that get themselves into a spiral of debt, the less responsibility these borrowers take. These people get weeded out of the system naturally through credit services like Teletrack and CL Verify.
If you take the mortgage industry for example, I believe that it’s not high interest rates that’s causing people to default on their loans. They’re either losing their jobs, which is understandable. Or they want to walk away from a house that their upside down on b/c they bought it with very little or no money down. They figure why keep paying the mortgage if I will owe the bank $30k when I sell it? Living for free for 12 months until they foreclose is a better deal for them. I find it hard to believe that the bank gives a person $300k to buy a house; and now that person is mad at the bank?
In the end, when people don’t pay their obligations, they’re really only screwing other people that want to get a loan.
