Thought Exercise: Payday Lending

Some background on this: a couple of years ago a guy bought my truck. It was an old truck and it had been in a wreck (and was sitting in my back yard).  To get the last part of what he needed he went to a title loan place. The entire reason for buying my wrecked truck was because he had little money, but needed wheels to get to another job that he couldn’t before.

I’ve thought about that day a lot over the years. And now reminds me of just how I felt when I gave him my title (to sell for ludicrous interest).

Here’s the exercise: if we really do want a system that keeps the government out of everybody’s business, what do you think of stuff like this? Is it acceptable to have such predatory pricing that seemingly targets “the poor”? Or is this just something that you can’t talk about if you’re trying to make a point about “tax cuts”?

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