Nevada Week S1 Ep32 Web Extra 3 | Legalities and Economic Impact


♪♪♪ (Kipp Ortenburger)
Let’s talk a little
about solutions. I know we all agree
financial literacy is something that we’re
lacking here, right? We have too
many residents that are living
paycheck to paycheck. Is there anything else
we can agree on where we see a happy medium
on both viewpoints, especially something
policy-driven, where we might be able
to come to something that can reduce what
our interest rates are and yet still
benefit payday loans where they’re still in
existence and serving a good service
to our community? William, I’ll
start with you. (William Horne)
Well, I think
financial literacy is one of the
prongs to do that. Unfortunately, that’s
not a light switch. I too grew up
in a time where when I started working,
it was not uncommon for me to also
use my money to buy some goods
for the home, right? But that’s a
generation process, so what do you do
in that interim? I think you have to
maintain that access because I think the outcome
if you just take it away is going to be worse,
much worse, and I think that Nevadans
and our legislators have taken a great deal
of effort to protect our consumers
from fraudulent and unregulated
online lenders, and I’d like
to keep it that way. -Emily, what’s a happy
medium we can come to? (Emily Stevens)
I agree with you that
financial literacy is really a big prong
to this whole solution that is going
to take some time, and in the interim
it is good for people to have access
to credit and to funds. I don’t believe
however that 500% or more in
interest is really the right way
to go about that. So if we could hold
payday lenders to the regulations that
are already in place by having a system
that keeps track of who’s lending what
and what their terms are and all of that
and we could cap that interest rate
at a much lower rate so it’s more manageable
for the consumer to actually see the light
at the end of the tunnel, that they can pay it,
then I think that would be more
of a happy medium. -William, is there
a tolerance on where we’re at, let’s say
where we are at 500%, capping it at 36,
is that acceptable? Is there somewhere
in between where it’s still
economically viable for payday lenders
to be around still? -Well, right now
it seems like we’re having a difference
of whether or not it’s a 500% interest
rate to begin with. I believe the products
from all the reputable companies out there
is a legitimate and fair product,
and I think the consumers are better themselves
to know whether or not those terms are
suitable to them. Do you have some that
will utilize it in ways in which we hope
they don’t have to– and yes, that occurs– but the large
majority of it, that’s not happening. A client had millions
in transactions in 2017 with five complaints. That’s not an epidemic
of problems because they’re a good company
providing a service, and I think a majority
of the lenders out there are like that
and I think we should crack down
on the bad ones. -Tennille, what would
you like to say? (Tennille Pereira)
Well, I think that
we can agree, William, on that last point
that there are some bad actors out there
and that we do need to crack down on them,
and I think the best way to do that is to have
front-end enforcement. There are some great
consumer protections that both sides of
the table have worked on to make sure that
consumers are protected and allow options to be
available when needed. But we need to make
sure those consumer protections
are followed, and the best way to do it
is on the front end so we’re not
chasing after them. Then of course I can
agree with both of you on the financial
literacy part. Absolutely, that’s
a huge part of it, but in the interim
let’s make sure our Nevada consumers
are protected and they don’t get stuck
in this debt cycle. -Great.
Thank you so much. We really
appreciate it. ♪♪♪

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