Jamie Fulmer, spokesman for Advance America (a CFSA Member), had a letter to the editor published in the Jackson Clarion-Ledger yesterday, where he discusses the importance of short-term lending. As a response to a recently published article, Fulmer had this to say:

Your article described short-term loan customers as those “without access to other credit.” But when facing such a shortfall, consumers say they consider the pros and cons of credit cards, overdraft programs, and cash advances from banks, credit unions, and retail lenders.

They also weigh the costs and consequences associated with missing bill payments or submitting them late.

Consumers thrive in a competitive, regulated financial services environment. The Mississippi Legislature approved meaningful reforms last year, preserving access to a variety of regulated options and implementing consumer safeguards. That was step in the right direction. But we must continue to ensure that consumers are equipped with all of the information they need to compare services and make informed choices.

A group in Mississippi made a few errant remarks regarding payday lending in an op-ed, but the main focus of the article is promoting financial education. The Pundit sees that as a noble goal.

The Foundation for the Mid South believes that financial education is essential. Every resident should have a basic understanding of financial concepts and what it takes to live within their means.

A letter to the editor challenges The Clarion-Ledger on its attacks on payday lending. Good read.

Can someone please explain how it is “entrapment” to offer loans to walk-in customers at rates that are posted on the wall with signs literally six-feet tall?

In the same editorial that The Clarion-Ledger praises itself for fair coverage, the newspaper takes another jab at the payday lending industry.

The cartel’s lobbyists refer to any regulation as nanny government by do-gooders. They say their fees and rates are accepted without complaint by their customers. They say they’re the real friends of consumers because they take the risk of advancing money to people who are not eligible for loans of other types.

Garbage.

The fact is this newspaper writer doesn’t want to understand the industry.

The Associated Press reports:

In Mississippi:

Gov. Haley Barbour plans to sign a bill aimed at reducing the 572-percent equivalent interest on payday loans, his office said Monday.

“The legislation has not reached the governor’s office yet, but once it does – unless there’s some unforeseen problem or surprise in it – Gov. Barbour is likely to sign it,” said spokesman Dan Turner.

The groups that wanted payday lending banned in the state are asking for a veto.

In Mississippi:

The Mississippi Senate on Wednesday gave final passage to a bill designed to reduce fees on payday loans, sending it to the governor’s desk.

Eight of the 52 senators voted against the bill, which passed the House on Monday.

The Clarion Ledger reports:

If the Senate passes and the governor signs the bill, it would take effect Jan. 1 and expire July 1, 2015. The current law is set to expire July 1, 2012.

The Clarion-Ledger reports that a compromise has been struck that will keep payday lenders from leaving the state. State Rep. George Flaggs told the newspaper that he didn’t believe arguments that the short-term loans are predatory.

“If you’ve got a checkbook and a job, you’re not stupid,” Flaggs said. “I don’t buy the argument that they’re preying on folks.”

 He said he didn’t want to put 3,100 employees working for payday lenders out of jobs, he said.

“The only thing the governor said to me was, ‘Don’t put them out of business, and try to do something fair.’ “

That’s the advice from a resident in Mississippi who urges lawmakers to think twice about shuttering payday lenders in the state.

In an ideal world no one would ever have to borrow from a lender. Money could be loaned free of interest. People could take their own time, as long as they want to pay back a loan. It will never exist.

Before any authority tries to put the check cashing business out of business, Think! If you do this again, what business will you be responsible to give rise to? There are more nefarious methods of lending. Think about it.