Access to short-term loans should be a right

Access to short-term loans should be a right

Executive vice president at Howard Stirk Holdings, K. Marques Mullings, succinctly sums up how important short-term loans can be for consumers:

As a former banker both pre- and post-housing market meltdown, I have firsthand experience of how much more difficult it has become to be approved for lending. Approvals are not only difficult for the borderline applicants, but also difficult for those with decent cash flow and FICO scores. The increased scrutiny of applicants by the underwriters working for traditional lenders, like banks, essentially locks a large segment of people out, thereby precluding them from obtaining traditional financial assistance.

The concept of supply and demand is one of the most fundamental principles of the free market underpinning the U.S. economy. When there is a void in the market, the free market allows room for businesses to supply the demand. According to the Federal Reserve Board, since the late 90’s, use of payday lenders has risen five-fold to the tune of $50 billion. When banks lock the consumers out, the market will address the need if the demand is high enough. The staggering numbers prove the demand is there and the demand was supplied with payday loan services.

“I consider (payday loans) a right, a right afforded to participants of a free capitalistic society,” Mullings continues. Read more at Washington Times.

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