Voices from Utah
May 29, 2008 | industry | Comments (0)This letter to the editor appeared in the Deseret News over the weekend.
Every year millions of Americans responsibly use payday loans to help solve short-term credit needs. Customers look at their options and make a reasonable choice. They tell us that they use payday loans to avoid other fees. They choose between bouncing a check or overdraft protection, incurring late fees on routine bill payments, borrowing from friends, family or church, taking out a cash advance on a credit card or taking out a payday loan. All of these products have a cost associated with them. Payday loans can be a less costly, desirable option.
Restricting access to payday loans and other financial products through licensing laws or zoning laws stifles competition. Consumers benefit most when they can easily choose from many different financial products.
Payday loans do serve a need, the ability for someone to obtain quick cash should an emergency arise such as an auto breakdown. The problem is, of course, the high interest rate.
Loans of this nature should be available, however government-controlled, to prevent excessive interest charges and abuse by both parties.
Ed Forbes
Hendersonville 37075
The Payday Pundit wholeheartedly agrees with Mr. Forbe’s sentiments.
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