Mississippi lender tells “hard truth”
December 8, 2008 | Mississippi, customers, industry, media coverage, positive media coverage | Comments (0)Great column by a member of Borrow Smart Mississippi in the Delta Democrat Times (read it with a Southern accent):
The hard truth about this sometimes debated industry is that people choose to take out payday loans because it is the best choice. The fee they pay to make that choice saves them more than it costs them.
No need to take my word for it. The Federal Reserve has already studied the matter in Georgia and North Carolina where legislators opted to cap fees so low that cash advance lenders shut their doors. The industry no longer exists.
The Federal Reserve reported that “Georgians and North Carolinians do not seem better off since their states outlawed payday credit: they have bounced more checks, complained more about lenders and debt collectors, and have filed for Chapter 7 (“no asset”) bankruptcy at a higher rate.”
The report goes on to say that “banning payday loans did not save Georgian households $154 million per year, as (one opponent) projected, it cost them millions per year in returned check fees.”
Comments»
No comments yet.