After being lavished with campaign contributions and buttonholed by an army of lobbyists, enough of our state legislators are apparently going to make sure Wisconsin remains the only state in the nation that doesn’t regulate an industry that lends money for two weeks at a time, frequently extends balances for big fees, and winds up getting as much as 520 percent interest on its loans.

Classic sour grapes from people on the losing end of a legislative fight.  They can never convince themselves that they lost on the merits.

Mr. Zweifel doesn’t care.   He’s been railing against business and capitalism for a few decades now and has never let facts get in the way of a good rant.     

(The paper accepts comments so click on the link above, go to the bottom of the story, and let Mr. Zweifel know how you feel.) 

Dear Editor: Dave Zweifel’s one-man smear campaign on the payday loan industry is as misguided as it is ill-informed. Zweifel has spent his recent columns assaulting an industry whose worst crime is providing another option for borrowers in need of short-term assistance.

Research shows that when politicians respond to the calls of overzealous interest groups (and apparently columnists) to eliminate payday lending, borrowers are forced to turn to more expensive and less desirable options. Economists with the Federal Reserve Bank of New York found that after North Carolina banned payday loans, those who were experiencing financial stress turned to bounced checks, bankruptcies and delinquent bill pay.

Zweifel’s personal opposition to the industry doesn’t change the fact that consumers are better off when they have more options to choose from. Taking away these necessary options will only leave the borrower stranded in debt.

This accusation might make for good copy, but is far from the truth.  Payday lenders have some of the most consumer friendly disclosure rules in the lending business. Our disclosure policy states that all CFSA member-companies will prominently display posters in their stores explaining their fees, and will post this information to their company websites.  Knowing the fees means that no one is getting “suckered”.