An Abilene economist weighed in on a sticky situation: payday lending.
The city council will soon vote on whether or not to regulate payday loans. It’s an issue residents on both sides of the argument feel strongly about. Some argue the high interest rates put poor people in a bind. Others say they need the money.
Economist John Hill says most economists will agree: creating regulations will cause negative effects in the long run.
“You come in and you cap that price for payday lending or opportunity to get payday lending, and you’re going to have a shortage of money for people that obviously need it,” Hill said.
A public hearing will be held at the April 27 city council meeting.