Dan says he’s at odd with himself about the issue. Me too. I have no doubt some folks really get screwed by these loans. But for the same reason I dislike anti-gambling laws, helmet laws, the war on drugs, and seat belt requirements, I can’t join the chorus of opposition to payday/title loans. I’m just not big on protecting people from themselves.
I’ve suggested in the past that a good solution would be making sure the lenders fully explain the loan in clear, unambiguous, and easily understandable language. If everyone knows what they are doing, I have no problem with the results. Currently, though, I’d be willing to bet a large number of borrowers enter these transactions without fully understanding how the interest rates work. Those are the problem cases, and making sure everyone had equal information would help eliminate them while leaving the loans available for those people who really need them.