Limit Bill in South Carolina

In Hull’s article, “Bill Would Limit Payday Lending Measure Aims to Cap Fees, Restrict Number of Loans Borrower Can Carry,” he say’s that government should or should not make a new law to control the fees of loan in South Carolina. In addition, Hull explains different opinion from tow people. Clemmons a political man talks about control the fees and reduce the percent of borrowers from 15% to 5% and he wants 36% for the yearly charge cost. Moreover, he tells us that government would put a new law for loan. On the other hand, Fulmer said that 36% a year is not enough. It would reduce the industry, and he said nobody can work with low salary. In addition, he said 390% per a year is not fair, it is normal amount for rate that in bank. Fulmer also said if somebody takes $300 and he can not pay it on time he can pay the fee which is $45 and take another loan to cover the first. Finally, he said his company has fewer fees than the bank and pay trade and customers find the less one.
A law of fee loan in the United States is different between states. However, in South Carolina fees are very high. Clemmons support the good idea. The percent should be reduced by the government to help and protect poor people, to curb the inflation of debts and to create social equality.
First, the main test for government is protecting people from economic and military problems. However, the percent of fees is very high and this is not fair to poor people because if they need money they must pay more fees from that money. In “ Bill Would Limit Payday Lending: Measure Aims To Cap Fees, Restrict Number Of Loans Borrower Can Carry” Hull claims, " state law allows payday lenders to charge $15 fee for every $100 borrowed on a two-week loan” (2007, para. 6). That mean poor people will drown in debt. For example, if one takes $300 to buy medicine for his child and he cannot return the money before 3 months. He should pay $580, this big number. So, when people need money will happen like that pay more fees. The situation of poor people will not be change
Next, to preserve country's economy governments must be given to balance economic and lowering of fees helps to curb the inflation of debts. That means loan cost affect countries economy. In "Interest Rates” the author claims “Low interest rates can stimulate the economy . . . High interest rates usually have the opposite effect “ (n.d. para.5). That mean if people take low fees in their loans, they will help countries to grown-up the economy. In addition, if the fees still high, big number of borrowers cannot repay loan. Moreover, lenders will suffer from nonpayment of money and the prices will be much higher because less percent of people can buy. At this time fees will affect whole the country not only the lenders or borrowers and the economy will go down.
Finally, loan costs will affect social equality because only lenders have the advantage from the system of loans. Moreover, costs will create big difference between people. For example, lenders will maintain their trade and continue to become rich. In the other side poor people will still be in the same situation. For example, if someone does not have money and takes loan with high fees, he cannot pay the loan and he will be keep on poor. In addition changing the law and lowering to %5 are good for keep social equality in the safe way. Therefore government has the responsibility to change law to help people.
In conclusion, we should support that opinion from Clemmons because poor people need that, to control the inflation of debts and to have great social equality. Therefore, it is necessary that government start to charge law to help state and people. If government changes the law, it// will be encourage economy and people to have good life.