I can’t read too many of these editorials– their shallow snap-judgements make my head hurt. Still, living in Utah, I had to answer this one and submitted the following to the comments section:

Let’s not make snap judgments based on sensational numbers and economic reactionism without exploring the issue beyond the rants of an editorial page.

A) Payday Lenders don’t give money capriciously. No one would receive a $300 loan with a $400 paycheck. Customers must qualify with a job, a checking account and can’t borrow more than 30% of their net paycheck.

B) APR calculations work when a rate is paid annually. Payday loan terms are for a maximum of 18 days. Rates demonized by quoting an APR instead of actual cost are misleading- which is usually why they’re inevitably the first thing mentioned for “shock and awe” in opinions speaking against payday loans.

C) Cries of “loan sharking” come from a single digit minority who abuse the service and subsequently attack the industry to liquidate their irresponsibility. People laugh at the obese who lazily sue fast food restaurants in the wake of poor decisions, but cry for blood when it comes to the financial equivalent.

Payday loans DO need regulation. There CAN be middle ground. Let’s ease the shrill reactionism and ignorant indignation and give way to reasoned, fair discussion– accepting that, for many, payday loans are helpful and appreciated.