Comment history for georgeaxiotis

georgeaxiotis  (anonymous) says...

Robert Hagan gleefully celebrated the victory of his anti payday loan bill a couple of years ago in the halls of the state capital. I introduced myself to him and told him he just cost the valley the jobs I created at 5 local stores. All of the facilities I used to rent are still vacant except one. My wife and I are living in Florida and spending absolutley no money in the Valley. I was a lifelong resident and will never return, I promise. Great job Bob. Kick his butt out as soon as possible.

georgeaxiotis  (anonymous) says...

EDITOR:

I am concerened that Rep. Robert Hagans' proposed payday lending legislation will further damage our already fragile local economy.
I would like to point out that a $100 loan taken out for 2 weeks with a payback of $115.00 has an interest rate of 15%. In order for the rate to be 391%, the loan would have to be renewed every 2 weeks on time for one year. There is no barrier for any qualified company or individual to enter the payday loan business and charge as little as they please. If they think they can operate their business, they could even charge the maximum amount of interest allowed by the bill sponsored by Mr. Hagan, HB 333.
This is approximately $1.50 per $100.00 loaned. Where are these enterprising companies that can run a business at these low rates? Why do they need HB 333 to pass before they can begin operating? Shouldn't we let the free market dictate prices or do we need our legislators to do it for us?
The Federal Reserve Bank of New York has published a study on the impact of the bans on payday lending in Georgia and North Carolina and found that the consumers face long term negative impacts when such loans are not made available to them. Since the ban, they have bounced more checks, complained more about lenders and bill collectors, and have filed for Chapter 7 bankruptcy at a higher rate. The study found that the problems are not simply withdraw symptoms from the ban on the industry. The problems, as the study found, "do not appear to be temporary." The Buckeye Institute for Public Policy states that "advocates and politicians need to stop treating payday borrowers like children. Most are making a choice that makes sense for them. Evidence also indicates that the "cycle of debt" that may trap borrowers is not caused by payday lending. Instead, the borrowers shaky financial condition is at the root of the problem. As evidence from the states that have banned payday loans illustrates, if these loans are banned it will not eliminate financial problems for these people. In fact, by denying them this financial option, it may make their financial problems worse.

George Axiotis
Warren