Payday loan businesses need a closer look

Editorials

Discussion

September 23, 2006

Anonymous The Meridian Star Sat Sep 23, 2006, 10:41 PM CDT

Mississippi’s payday lenders have had it too easy for far too long.

Their ad jingles are catchy and their signs are flashy. For a “small” fee, you can get cash today instead of waiting until your payday. It’s almost too easy.

No credit check. They hold your personal check until payday and you walk away with the cash you need.

But truth is rarely found in their catchy slogans. Spending a year paying off a two-week, $400 loan because of nearly 500 percent in annual percentage rate interest is closer to reality, according to the Mississippi Center for Justice. This is akin to legal loan-sharking.

The worst part: It’s the poor who rely on these types of businesses. And they’re the least likely to have the financial resources to withstand the deep levels of indebtedness caused by the harsh terms.

The Department of Defense lists payday loans as one of the top 10 threats to service members and their families, the Center for Justice said. Per capita, Mississippi ranks third in the nation in the number of payday lenders.

Other southern states have started regulating payday lenders; some have even done away with them altogether. The 1,139 payday businesses in Mississippi, however, continue to operate with little scrutiny.

When businesses take advantage of our most vulnerable citizens, we believe it is time for the state to investigate their practices. While over-regulating business is rarely a good thing, it is important that these businesses be required to report the number of loans they make each year and their true annual percentage rates.

Are the same people using these businesses over and over again? If so, is this really a necessary emergency option for consumers? What are the alternatives and solutions?

It is time the state takes an active approach to investigate payday loan businesses.

Text Only

Editorials

Spring revival time
February 10, 2012
Military cuts and BRAC to challenge leaders
February 6, 2012
Governor takes lead on state budget
Sound, principled leadership is needed in times of economic uncertainty.

February 5, 2012
A tiny little straight line fracture – the show must go on!
January 27, 2012
Fruits of investments becoming evident
Investments by Mississippi State University and the Riley Foundation continue to breathe life into downtown Meridian.

January 22, 2012
Questionable decision by outgoing governor
When former Gov. Haley Barbour left office last week he was supposed to enjoy a comfortable legacy as one of Mississippi's most popular governors.

January 15, 2012
East Mississippi's position in House should strengthen
November 20, 2011
Election day is right around the corner
Tuesday will be here before you know it.

November 6, 2011
East Miss. welcomes new plant with open arms
If you haven't driven north of the Lauderdale County line on Highway 493 into Kemper County lately you need to.

October 16, 2011
Incomplete arrest reports a problem
October 9, 2011
More Editorials Headlines

Editorials

Search Results

Discussion

Payday loan businesses need a closer look

Site Map

Contact Us