Payday lenders fill crucial niche in Alabama
July 25, 2008 | Alabama | Comments (0)Jeff Kursman, an industry spokesman, responds today to recent critiques of payday loans in the Montgomery Advertiser. Jeff reminds us of the devastating effects of removing payday loans as a financial option:
A researcher with the Federal Reserve Bank of New York concluded that consumers in the states of Georgia and North Carolina bounced more checks, complained more to the Federal Trade Commission about lenders and debt collectors and filed for Chapter 7 bankruptcy at higher rates after those states eliminated payday loans.
These findings indicate that households without access to payday loans are forced to use costlier credit and suffer greater financial difficulties.
What critics don’t seem to understand, and what Jeff makes so clear, is that not everyone has a friend willing to lend them money or has a credit union down the street running an experimental small-dollar loan program. When we remove payday loans as an option the results speak for themselves.
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