Pay attention to the Payday loan Pundit
Whether you need information about a payday loan or want to keep up with financial news and tips, Personal Money Store is your source. However, we’re not the only game in town. The Payday Pundit has a keen insight into the comings and goings of the cash advance industry and loads of sound consumer financial advice.
Recently, one of the Pundit’s readers commented on what overregulation is doing to the payday loan industry and consumers alike. Cash Advance Mojo would like to share their thoughts here:
In my opinion, the legislators are just covering up their own incompetence with regards to regulating the payday loan industry. How many people in state government have ever taken a payday loan? The problem is that they are not 'middle class' people and they don't understand the product. Instead of taking the time to understand the product and coming up with viable regulations, they decide that its best that they put in a rate cap that puts lenders out of business (some are even ignorant enough not to believe that!).
Their lack of understanding causes weak oversight and allows some lenders to use abusive lending practices (such as charging excessive interest). If they actually did their homework, stopped looking down their nose at a business they hardly understand (and its customer base), and worked on a more universal approach to regulation, they would do the business and the public a great service. ... click here to read the rest of the article titled "Payday Pundit Reader Right On About the Payday Loan"