In a LTE, Laura Polacheck of AARP Utah wrongly claims that “ All forms of credit are required to post an annual percentage rate so consumers can compare the rate at which interest is being charged.”  This, in fact, is far from the truth.   

If asked, consumers don’t care what it would cost them to have a payday loan for an entire year.  They want to know what they will actually pay, what the total cost will be out of their pocket for the term of the loan, not some hypothetical percentage.  All of the research shows that consumers do compare the alternatives and do make educated decisions on which short-term credit products to use.