A OPINION: Small-Term, Short-Term Loans Could Be Processed by the Post Office
Payday loans are high-interest temporary and solely based on a person’s pay. In reality, they are loans that are used to fill in a gap or to cover emergencies, such as the unexpected repair of a car. Payday lenders argue that they are needed to assist people who are struggling who are in financial trouble. However, the results of a study conducted by the Pew Charitable Trusts found that just 16 percent of borrowers who took out Ipass.net loans utilized the funds for unexpected costs. The majority of people who borrowed payday loans used the funds to pay for regular expenses such as bills such as rent, food, and other expenses.
Based on the Seven Pillars Institute Global Finance, payday lending is “a dangerous mix of high operational costs as well as poor returns.” The lender can access your account on the day your paycheck is received and will take the full lump sum. This is before you have the ability to pay for other expenses or take cash out. It could leave you with a shortfall yet again, which could lead to another payday loan that is high-interest and another cut from the next paycheque.
Payday lenders claim that they offer a service to certain segments of the population who do lack access to traditional credit cards or bank loans. Some critics argue that it is a form of financial slavery.
A middle-of-the-road approach according to Seven Pillars could be to offer payday loans at a reasonable rate by a government-run agency, such as The U.S. Post Office.
What do you consider?
When I started the “work” time in the year 1958 The post office was the bank. The first account I had for savings was in there. It was almost unanimous among the seniors in our group that one should avoid debt like a plague. Things have changed, but the fundamentals of living aren’t. Post offices should offer basic financial services in every post office. We also had living wage legally required, and affordable accommodation, food, and clothing readily available. Hospitals were run by the local authorities and churches, so medical services were accessible and affordable. The country has degenerated and declined significantly. We require less Wall Street and more New Deal to be a modern, civilized nation.
Post Office Banking is a great way to revitalize areas of the country that are not well-served. Post offices are situated in a variety of areas that are not served by retail and banking establishments as well as banks. They are a part of an existing infrastructure that is difficult to duplicate and offer the chance to begin rebuilding rural and inner-city economies. Services must include savings and checking accounts, debit and credit cards; loans, and access to the internet. They can collaborate with credit unions to offer financial services.
It’s not as if it matters due to the lending lobby. We have a variety of credit unions that are able to assist people in need of short-term loans. Keep the USPO from the problem as they’ll take the bad loans off at our cost. Credit unions can help with counseling, but If they value the loans with a reasonable risk (not 36 percent) they can earn profits and reimburse loan agents. I’m not sure of the regulations that should be changed in order to provide personal service, but being concerned about the people who require money.
USPS is Not A Bank!
I’m responding to your blog post from 4 February 2022 about Payday payouts in addition to its “middle of the road” solution proposed by Seven Pillars having the US Post Office oversee payday loans. First,I am a lover of our local post office and the staff who deliver our mail as well as provide current services for moving packages and mail from point A to B. I have the greatest respect and admiration for them! But, this phrase is a reference to Pillars’s comments ” I’m from the federal government and I’m here assist.” President Ronald Reagan declared the phrase “the nine most frightening phrases that exist in the English language.” An unambiguous statement that government isn’t always the best solution, and ought to be thought of as the final option in the event that all other solutions are failing. The final place where the USPS must be involved is the financial service industry business. In the financial services industry, the US Postal System (USPS) has lost $6.9 billion during FY 2021 as well as $7.6 billion in the year 2020. losses suffered by the USPS could only grow in the administration of financial services products. When I go to the post office a lot of times employees are stretched to the limit on staffing. There are long queues and it’s something I’ve accepted every time I visit. The responsibility of providing or coordinating financial services, and all the regulations that go together with disclosures and other requirements can overwhelm an already over-stressed staff. In addition in a newspaper referred to as Government Executive and an article written by Eric Katz dated January 14 the 14th of January 2022 The USPS in the pilot program, which includes four post offices located in Washington DC, has Washington DC area, has provided financial services to only six people since September 2021. selling gift cards, and has reported earning $35.70 over the course of that time. The financial services business is definitely not where the USPS should be, and having the USPS offer financial services isn’t a solution. It’s definitely not an effective “middle in the middle” solution! (This email comes from a bank’s president.)
Yes, it is a period
You asked us if we could “administer payday loans with reasonable rates by a government agency such as that of the U.S. Post Office.” Yes.