Feb. 6, 2013
-- A recent article on the Stateman.com is rehashing the old argument that the payday loan and the title loan industries are harmful to consumers. This new piece on the Stateman.com speaks specifically on the attempts in the Texas state legislator to regulate the fast-cash lending industry. Several cities in the state - Austin included – are have already enacted ordinates restricting lending. While it is abundantly clear that state law makers only want to assist borrowers who may be taken advantage of they are however causing a disservice to lenders and borrowers alike.
The new laws that are being debated in the state house are regulations on the amount of funds that a borrower can receive from a lender, the interest rate on said loans. Our industry is fighting hard to leave the debate on whether or not cities have the right to pass laws against fast-cash lending “They spent a gazillion dollars two years ago trying to undermine regulations for their industry, and the speculation is they’ll spend another gazillion dollars this year,” said Austin City Council Member Bill Spelman. “We are trimming their profit margins a little; it’s better for customers,” Spelman said.
Points like these made by Council Member Bill Spelman are the exact reason eTitleMax (http://www.etitlemax.com/
) stands on the forefront on defending our industry. When a government official states that they are trying to trim the profits of a business as a matter of course someone should stand up. In America we have a proud tradition of free-market capitalism; it is what allows for innovation and fair competition. By regulating fast-cash lenders the government is interfering with the borrowing public in ability to secure the money that they need. There should be nothing standing in the way of consumers and businesses engaging in a legal transaction.
The fact is that around 90% of all borrowers repay their car title loan in a timely fashion and thus avoid incurring reposition. Therefore there is no logical reason for government meddling in the affairs of a fair opportunity for borrowers – many of whom who are economically challenged.