As anyone who has filled a gas tank or made a grocery run lately can tell you, a dollar doesn’t go as far as it used to. And it doesn’t take a PhD in Economics to see that even consumers with good credit are being turned down for loans these days. But with all the stress about rising commodity prices and the crisis sweeping our major financial institutions, what are state legislators doing to make things easier on consumers? Just making sure credit is even further out of their constituents’ reach.
This week marked the latest chapter in the current crunch, and reports keep pouring in that pawnshops and payday lending businesses are busier than ever. What does it all mean? Could it be that, in these frugal times, consumers could use a little extra help getting by from paycheck to paycheck (a service that payday lenders are known to provide)?
It’s common sense, really. And in Arkansas, there’s a shortage of that in the Attorney General’s office (emphasis ours):
"Each and every payday lender operating in the state of Arkansas is currently under investigation by the AG’s office," Deputy Attorney General Jim DePriest said. "It is our goal to stamp out payday lending in the state of Arkansas."
Sadly, the Arkansas AG isn’t alone. A Kansas Congresswoman seems to think she can garner more support for her crusade against payday lenders as our economy continues to sag and more consumers could actually make use of the service.
What are these Nanny Staters thinking?
Americans are stressed out about their finances. A recent ABC News/Washington Post poll found that nearly two-thirds of us report being “stressed” about our financial situations. So why are state politicians and “consumer advocates” on such a mission to make things even harder?