Laughable (and very flawed) logic
November 3, 2009 | Uncategorized, research | Comments (0)A new paper uses “social disorganization theory” to make the case that (1) violent crime is higher in lower-income neighborhoods; (2) payday lenders locate in lower-income neighborhoods (3) therefore, payday loans cause violent crime. The conclusion is unsubstantiated and not supported by any evidence whatsoever.
The NBC affiliate in Los Angeles has covered the paper. Note: to the right of the story you can rate the story. Categories include: bored, laughable, intrigued…
Payday lenders “target” everyone
February 28, 2008 | Business Week, customers, industry, media coverage, research | Comments (0)A new study says that payday lenders locate in communities with large Christian conservative populations. This on the heels of prior allegations that payday lenders locate in communities with high populations of minorities, women, immigrants, the elderly, the poor, the middle-class and now conservative Christians. A recent BusinessWeek article even said payday lenders are now targeting more affluent neighborhoods.
Who’s left? This is preposterous.
The only thing payday loan customers have in common is that they all have steady sources of income and bank accounts and sometimes have unexpected or unbudgeted expenses that require cash between paychecks.
While critics of the industry assign labels to payday lending customers in an attempt to further their political agendas, the fact is that payday lenders provide services to a broad cross section of Americans because there is a broad demand for the financial service provided. Payday lending customers represent a broad demographic segment and cannot be grouped based on race, sex or religion.
