She knows
April 28, 2009 | industry, regulation | Comments (0)From the Sheknows blog:
Payday loans are often the only choice available to their primary users, other than rounding up personal possessions and heading out to the pawn shop. The fact is, most of the people using payday loans do not have the option of going to a bank and getting a personal loan to cover an immediate cash need. The standard complaint among lawmakers and advocate groups is the rates and fees associated with payday loans. The claim is that payday lenders are predatory, and trap their lower income users into a cycle of debt.
Lawmakers and advocate groups that insist that the payday loan industry needs to be stamped out legislatively are behaving in in a manner that is, at best, a clear demonstration of the degree to which these typically financially comfortable people are out of touch with the needs of ordinary people. At worst, their behavior is insultingly paternalistic, insinuating that those of lesser means are not capable of making their own decisions, such as whether a fee of $15 per $100 borrowed, notably less than the usual bank overdraft fee, is worth the convenience of having it now. In some cases, it is. But, even if it isn’t, it is not legislators’ and advocacy groups’ decision to make.
Great name for a blog, and great opinions.
Comments»
No comments yet.