“More options…the better”
April 14, 2009 | Wall Street Journal, federal legislation, industry, media coverage, positive media coverage, regulation | Comments (0)A great guest piece in the Wall Street Journal today by Robert DeYoung, an economist at the University of Kansas. If you read one story today, read this one:
John Caskey of Swarthmore University, a leading expert on fringe finance, reports that the typical payday borrower is young, is married with children, has at least a high school education, and has a major credit card. So the characteristic that most differentiates a payday borrower from a non-payday borrower is simply the need for short-term credit.
Being a paycheck behind on our bills is a situation none of us wishes to find ourselves. But when that situation occurs, the more options we have at our disposal, the better. So long as both sides of the deal have full information, these choices are better left to households and their creditors.
Yes, competition drives prices down. Consumers get it. They know the cost of payday loans and the alternatives.
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