Payday Pundit

Mike Sussman appreciates the fact the payday loans are completely undertstandable as opposed the his incomprehensible credit card statement.       His column in the Newark Advocate concludes with this:

I have spent most of my life in the lending and lending subsidiary business. It has been my experience that banks will make ridiculous loans to questionable business entities at low rates of interest while denying the small borrower anything other than high interest short-term credit card loans. Please see Skybus and Enron.

Payday lending, while expensive, is the last line of defense for the financially overburdened low credit score consumer. Taking this option away will only increase the amount of hardship in a state already overwhelmed by foreclosure. Consumers, unlike Bear Stearns, will have nowhere to turn for immediate financing.