Payday lending Services should be banned

COUNTERPLAN: The Consumer Federal Protection Bureau will implement a national regulation on payday loans composed of the following four parts: In the world of the counterplan, consumers will be able to access the benefits of payday loans in an emergency when they can't scrape together enough cash to pay for an unexpected expense, but the ban on rollovers will encourage more responsible use of payday loans and prevent endless debt cycles. No, no and no we are not doing this. I am not doing this stuff Observation 1: Judge in my world the opponent"s case means this. In my world we will have this. "Judge my counter plan is the best solution " No I clearly stated the options you had in your burden I despise counter plans especially ones that aren"t even real. Also I didn"t set this like a Congress debate, policy debate, or LD debate so I don"t know why you"re trying to make up something and run it. I looked this up and couldn"t find it. This is a made up counter plan rather than a plan that actually exist and therefore isn"t applicable to the round since it"s not facts. Also you don"t even need this framework you have a good case, just run with it, I didn"t even set up some made up framework or unfair harsh observations for you to follow as well. Make this a fair fun debate. So in conclusion we will instead focus on his main argument which I like a lot and am willing to debate against anything regarding his plan isn"t included in the debate. "I will argue that regulating payday loans is better than banning them, and that payday loans should not be banned because regulating them is better." Attack on cont 1 :DISADVANTAGE - BUSINESS CONFIDENCE He claims that this method of banning pay day lending would hurt the "honest pay day lending services" but as I stated in my case, Tuesday, 17 March 2015 skynews.com ASIC has investigated 13 leading payday lenders and found some engaged in questionable lending practices. The majority of pay day lending services are very questionable and issue possibly unsuitable loans and setting longer-than-requested loan terms to maximize interest payments. (Loans you can"t pay back) Thus we must take a utilitarian approach and take the action that benefits the most people. MOST people are badly affected by pay day lending services since MOST are bad. Also he makes an argument that banning pay day lending would make pay day lenders lose jobs but like I stated even in my intro these pay day lenders are unethical and don"t care about the people the harm anyway. Also I provide alternatives that work with loans therefore those people can find jobs either way. Furthermore more people will benefit if this is banned and alternatives are more openly advertised. The problem is they are overshadowed in a lot of cases by pay day loans. Also I provide an alternative that are similar as my opponent points out to pay day loans in what they can provide which is installment loans. Response to his attack on INSTALLMENT LOANS "You can only get them with secure credit, interest rates are actually high from them". First of all I would like to state that I didn"t say installment loans are the perfect solution or way different then pay day lending. Just that they are a safer alternative. I don't have to provide a perfect alternative just that pay day lending should be banned, I am just providing some options. Installment Loans are different than Payday Loans in the sense that they can paid back slowly over time. Most of the time you will find that an Installment Loan offers a much lower APR rate on average then a payday loan Rates can start as low as at 5.99%. No hidden fees, No prepayment penalties, no rate hike or payment increases also there are fixed rates range 5.99% to 36.00% APR In the end payday loans are just short term loans with high interest rates with quick return policy. Installment loans are much better in this case, their interest rate is relatively lower and one doesn"t have to return it as soon as they have to in payday loans. https://www.prosper.com... Lastly according to http://time.com... from a time money article on the same database as his this method of installment loans is actually the best method to utilize to improve credit for 2016. His article is from 2013 about how bad these loans can be. 2013 is three years ago therefore stricter regulations and improvements have been made to installment loans since then. I would like to point out in regular debate if information determines a round or seriously clashes they look to recent data since that"s only logical and I have recent data from 2016. Also as stated in the article taking out a debt consolidation installment loan can raise your score by moving balances from the high-score-impacting revolving type of debt (credit cards) to a low-score-impacting installment loan. Again I am not suggesting this alternative has no flaws and is perfect, just that in a terrible situation this method is more beneficial than pay day loans. Part 2 of his response: Credit is required for installment He also makes the claim that you can only get these loans with a manageable credit which is sometimes true but every American is obligated to manage their credit. In a lot of cases the credit is the individuals fault, also it"s logical that when you are in debt and have bad credit you don"t have many opportunities however he is claiming that that payday lending is there to morally help individuals and build them back up which I will continue to show they are not specifically now in Texas in a later point I establish. DISADVANTAGE- Desperation argument His argument on my introduction: He tries to argue something that"s a fact on a database with his own opinion. I guess we shouldn"t be surprised by this since he tried to use made up framework in the debate round. I put this link under my intro https://www.nerdwallet.com...... He states that people get pay day loans if they are desperate; I agree they do that which is why I am trying to fail this legislation. They do that and it leads to consequences. Also he claims people"s only option is pay day lending, but those 12 million he claims will be affected can borrow from a friend, turn to pawn shops even, payroll advances, borrow from retirement accounts( again not the perfect method but at least no super high interest rates or spikes like pay day loans), bill forbearance, simply research and actually read more on loans to ensure you select the right ones. Also many websites offer less expensive borrowing options. There"s LendUp, which provides lower-cost installment loans,. There are also peer-to-peer lending websites such as Prosper and LendingClub, which offer better choices compared with payday loans. My response to his faith based argument- A lot of churches nowadays sadly do operate for a profit http://www.cnn.com... Also again we can"t help all 12 million people but at least show them alternatives to help them. No method is 100% solable and I think it"s unfair to give me this burden. I"m mainly focusing on why we shouldn"t have pay day loans not how I will solve for all 12 million individuals. That"s my burden to prove why we shouldn"t have pay day loans. The danger PAYDAY LENDING IN MY AREA In fact according to http://money.cnn.com... in my own state Texas many citizens are getting arrested for pay day loans. Arresting people -- or threatening to do so -- over unpaid debts has been illegal in Texas for years now. Yet, that hasn't stopped payday lenders from using the criminal justice system to go after more than 1,500 borrowers in the state. Payday lenders are routinely turning to the courts seeking criminal charges when borrowers don't have the funds to repay their loans on time, a report from Texas Appleseed found. Such charges can lead to arrest or even jail time if the courts decide to pursue a case. "In addition to their outrageous rates and lending practices, payday loan businesses are illegally using the criminal justice system to coerce repayment from borrowers," said Ann Baddour, director of the Fair Financial Services Project at Texas Appleseed. Next there are many online alternatives that are similar to pay day lending like my opponent pointed out. The fact that this is just my location alone shows the possible other consequences to individuals. I already stated the dangers of payday lending in general in my case but just wanted to show narrow impacts. In conclusion my opponent doesn"t clearly state why we should actually have pay day lending services. I state why we should not. Sure I don"t provide the perfect alternative but that's not my burden. I am just proving there are ok alternatives and pay day lending should be ban.