Jobs Lost Because of a Bad Bill
Tuesday, February 24, 2009 at 10:58AM Dave Ridley put out a video warning that if HB 267 passed last year it would lead to NH citizens losing their jobs. Other groups warned that government would drive people out of work.
The bill was to prevent short term high interest loans. The state ignored the warnings and passed the bill regardless. You can view the roll call here if you'd like to see how your state reps voted.
Now let's jump ahead a year and look at an article from this week in the Telegraph.
A second payday lender is leaving the state because of a new state law that went into effect at the first of the year capping the amount of interest short-term loan operations can charge.
Advance America Cash Centers, a publicly traded company with 2,800 stores nationwide, will shut down all 24 of its New Hampshire stores within a month, said spokesman Jamie Fulmer.
This will mean a loss of 50 jobs, which the company says could have been avoided.
"The government took action to put us out of business," said Fulmer. "We're very disappointed. They took a legitimate, regulated business, one that had no registered issues or concerns from customers, and driven them out of the state. It's a shame . . . We were willing to work with them, but instead they chose a path that means a loss of jobs and a loss of viable options for people who need short-term loans."
Locally, Advance America had stores in Nashua and Merrimack.
And reading the comments to the Telegraph's article you'd think this was a great thing.
"Good Riddance." wrote MICHAELEDWARD
"Good! Send the loan sharks packing!!" wrote Joe
"Bye leeches." wrote Just_Wondering
"Good riddance. Nothing makes it feel like I'm living in a slum more than the "legal" loan shark business right down the street." wrote AlexF
These people sure feel good about driving "leaches" and "loan sharks" out of business but no one was forced to take a payday loan. And when you stop to think about it, is it really that different then over drawing on your checking by writing a $100 check you don't have money for and being hit with $70 in penalties? Since the payday loans were open about it they were considered "evil" and now we have two companies that have already closed shop putting NH citizens out of work.
Now instead of only those who willingly sign up for this type of loan having to pay out, we all have to pay out in our taxes to support more unemployment at a time when our economy is already in trouble. Hope those Reps who voted for this are really proud about creating more unemployed in this state!
Reader Comments (3)
For instance, a younger person without any real bills spends their pay each week having fun. Suddenly their car breaks down and needs engine work. They can't wait 30 days for approval of a credit card and need the money right away. Without a car they can't work. This happens in the real world and I know college students who've had this happen to them. Without a short term loan they would have been in serious trouble left without a car to get to and from school and work.
Here are some additional valid reasons for short term loans...
http://www.associatedcontent.com/article/626335/using_shortterm_debt_settlement_loans.html
"If this short term loan is going to save you money in the long run, then it is something you should do. If you are using the money to avoid credit card late fees, returned check charges or to repair a car so that you are able to collect paycheck, these are all valid reasons for using a
short term debt settlement loan."
Adults should be able to make the choices for themselves whether this is right for them or not, NOT the government. But then again you have no problem with a nanny state making all your choices. I wonder if you even have a line of what would be considered too far? After all as long as it's in the best of the common good, right?
The Hillsboro office closed last week. I watched them load the office furniture up into a truck.