Let’s face it, there are a lot of people… who don’t have… a friend or a supportive family member close by. They also usually can’t go to a bank and get a small loan. A lot of them might not have a bank account or, if they do, they don’t have enough in it to cover a small loan and fewer banks want to be bothered with making such small loans anyway.

So payday loan companies might fill the void for those who find themselves friend-less or bank-less or otherwise facing a pressing financial need. That might be why about a half dozen exist in the Monroe area alone. Not long ago, there were none.

The Community Financial Services Association, a trade group, represents about half of the estimated 22,000 payday lenders in the nation. Despite being under constant attack, primarily from well-meaning legislators, it argues that the industry is needed.

Earlier this month, for example, the Ohio House passed a bill that would lower the maximum that payday lenders could loan and cut to 28 percent APR the maximum interest rate that could be charged. Payday loan companies say this kind of legislation, if adopted, could screw up the whole industry, put people out of work and hurt the very consumers legislators hope to help.

Excerpts don’t capture the piece, so we recommend visiting the site for the complete column.

Essentially, the blog notes that while most companies that receive a bad check can take the writer to court, payday loan companies face a number of restrictions in recovering the debt.

Read the whole post here.