Educating the media
March 17, 2010 | Tennessee, customers, industry, regulation | Comments (0)From Check into Cash’s Ryan Harris in today’s’ Chattanooga Times:
The Times showed a lack of understanding about the payday lending industry in its recent editorial (“The financial reform test,” Saturday, March 13).
Tennessee law does not allow payday lenders to charge one cent of interest and also does not allow loan rollovers. In fact, Tennessee has such a strong regulatory structure for payday lending that its laws have been copied by other states.
Payday lending is the most transparent financial product on the market with simple, one-time fees that are capped at $30 in Tennessee. These short-term loans cannot fairly be judged on an annual interest rate. In Tennessee, the cost of a payday loan is between $15 and $17 per $100 borrowed and the loans cannot be rolled over at additional costs. State law also limits the amount of payday loans to $300.
There are only so many things one story can get wrong.
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