Ban payday lenders

Only a ban can guarantee payday lenders will no longer exploit consumers in our state.

But the S.C. Senate has decided to try regulating them - finally. Shamefully, when lawmakers sanctioned this predatory business in the late '90s, they provided no protections for consumers, many of whom now find themselves trapped in long-term cycles of debt. They can't afford to repay the initial loan, at an annualized rate of 391 percent, and find themselves getting additional payday loans to pay off older ones.

While a ban is preferable, senators have approved rules that would provide some good protections for consumers. If these legalized loan sharks are going to be around, the least the Legislature can do is minimize the damage. Token regulation isn't an option. Even with these regulations, we expect the day will come when lawmakers decide, as we have, that only a ban can really protect the public.

Fortunately, the Senate - pressured by Sens. John Hawkins, Joel Lourie, Luke Rankin, Ralph Anderson, Gerald Malloy and others - approved legislation that is much stronger than an amendment favored by the industry. ...

When payday lenders ask for a break, lawmakers should remember they've had it their way for a decade.

It's time to look out for consumers for a change.
The (Columbia) State