Should Credit choices be limited by Bureaucrats? Are elected officials smarter than consumers regarding how to borrow money?
RE: Credit –From the March 26th 2014 Senate Banking Committee Hearing: “Are Alternative Financial Products Serving Consumers?”
“God forbid we let people decide what is the most sensible thing to do in the circumstances they face,” said Sen. Pat Toomey (R-Pa.), during the hearing. “There is a breathtaking, underlying arrogance in the presumption by wealthy people who have never been in those circumstances that they know better than those people who make these foolish decisions and borrow money from these institutions.”
Toomey speaks for many Republicans, and some Democrats, who are uneasy about the prospect of the government limiting the number of payday loans Americans can take out at a time.
Thankfully Senator Toomey understands that people need choices and they are smart enough to make them on their own.
Lending regulations require labeling and disclosures to be given throughout any loan agreement. That includes our payday loan and cash advances. Payday loans in Missouri are subject to the same promissory note regulations and requirements as all normal installments loans. It seems a dubious claim that Consumers doesn’t understand how such loans work. They would almost have to willfully declined every opportunity to read repeated disclosures or ask questions about the loan.
Payday loan borrowers are adults. They are capable of making choices on their own knowing what is best for their situation. Being adults also means taking care of problems that arise in life, including making the wrong choices. But wrong choices for some adults are choices well suited to others. Why should we require regulation to eliminate a choices that can not be universally handled correctly by everyone in society. That type of thinking would bring back Prohibition from the 1930’s. How many bad choices with severe consequences have come from less-than-smart decisions due to alcohol?