“No one should expect that any logical argument or any experience could ever shake the almost religious fervor of those who believe in salvation through spending and credit expansion.” – Ludwig von Mises, in his book, Planning for Freedom: Let the Market System Work : a Collection of Essays and Addresses.
It is not high finance, but short-term lending helps a lot of consumers out of tight places. This session, multiple bills would have significantly reduced or banned short-term lending.
Banks and credit unions generally won’t make short-term loans, so people in need of quick access to funds have to turn higher cost alternatives. While critics claim these higher fees harm consumers, many short-term borrowers could have been devastated if the Legislature had banned these loans.
The higher fees are necessitated in part by the small size of the loans but also driven by consumer demand.
This post was first published by the Texas Public Policy Foundation.