News & Resources

Should states focus on easing short term loans?

Jan 07, 2011 Todd Milner

It has been a question on the lips of many legislators in recent months. Many states are evaluating the short term loan industry and other nontraditional credit businesses under their jurisdiction. Some say the proposed and existing rules go too far. Others say they don't go far enough. But an editorial by the Post Crescent of Appleton, Wisconsin, writes that whatever issues face the short term loan industry, governments should have their sights set higher. With budget crises, high unemployment and other issues in many states, perhaps short term lenders should be left alone. "Lawmakers, don't you have bigger fish to fry?" the editorial proclaims. The editorial continues to explain that changing the short term lender rules in the state of Wisconsin shouldn't even be on the radar screens of politicians. "Everyone wants Wisconsin to welcome corporations that hire workers and pay corporate taxes," writes the publication. "We need economic development. Easing the restrictions on short term loan providers isn't the way to do it." According to the Iowa Independent, the key to regulating the short term loan industry will be to reduce consumers' need for the funding. "People who go to short term loans, their main problem is that they had no bank to go to," Republican Linda Miller, told the publication.