The editorial in the El Paso Times on January 4, 2013 was about potential city action relative to payday/car-title loans.
I agree with the Times and applaud the fact that they are taking a position on this issue. Sometimes these loan businesses are vultures. Many times the firms do not end up helping the borrower, they make the problem worse.
I have not read the proposed ordinances that the city is considering, so I do not know how they are structured.
I have however read the editorial and take issue with what the Times proposes.
They wrote “the city may need to act on the following:
- Limit the amount a customer can borrow
- Limit the number of times a customer can renew a loan
- Require lenders to provide financial counseling for borrowers”
Any rules that the city adopts should control the actions of the loan businesses, not the consumer. The city evidently has the right to control the business licenses of these lenders and thus some of their actions. I suspect that the fees charged and interest rates applied are the real problem here — the Times does not address these issues. If however they feel that their suggestions are the right business way to handle the issue, I would prefer that the Times write:
- Limit the amount the loan business can loan to an individual
- Limit the number of times the loan business can renew a loan
- Require lenders to provide financial counseling for borrowers
I do not know what penalties the Times would propose. If any activity needs to be made illegal or subject to fines it should be the actions of the businesses, not the individuals.
I have enjoyed seeing the Times do better under the new editor and publisher and hope that they take my comments constructively.
Maybe the Times intended what I have suggested. If so, they should have said it.
We deserve better
elpasospeak 
Well said.
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I never realized that our city council was intended to be financial regulators (not to mention their lack of knowledge and qualifications to do so). I wish they would focus on limiting their ability to borrow and spend on our behalf. Could it be that city council is focused on payday lenders because these business owners have not provided enough campaign support to those running for city council? Nah, of course not. What was I thinking?
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