Foresight needed for short term loan legislation

Before legislators move to ban or strictly regulate the short term loan industry, one reader of the Laurel Leader-Call in Laurel, Mississippi, urges them to proceed with great caution. In a letter to the editor, Chris Marengo recently brought up a few important thoughts that lawmakers should consider before voting to limit interest rates on these short-term loans, effectively eradicating the business practice from the state. While not explicitly supporting or arguing against this nontraditional credit line, Marengo just wants residents of Mississippi to think long and hard before choosing a side in the short term loan battle. In an ideal world, no one would need the services of a short term lender. But especially in these times of economic uncertainty, many consumers need the safety net of a short term loan when emergency expenses pop up. Instead of trying to eradicate this form of borrowing, perhaps lawmakers should look into what is causing consumers to need this line of credit in the first place. "Before any authority tries to put the check cashing business out of business, Think!" Marengo writes. "If you do this again, what business will you be responsible to give rise to? There are more nefarious methods of lending. Think about it."