Protect consumers “from” government
October 9, 2009 | ACORN, federal legislation, industry, positive media coverage | Comments (0)Great oped from columnist Star Parker:
Consider one of the most politically besieged financial services businesses in the country. Payday advance loans.
According to the website of the industry trade association, the Community Financial Services Association of American, the industry is relatively new — it got started in the 1990’s — and now delivers about $40 billion in short term, low denomination loans.
You can’t help but conclude this is a service many consumers want.Sure, it’s tough out there. Families trying to make ends meet and dealing with short-term cash flow problems is not a pretty picture.
There’s a lot of ways the challenges have been and are met. Bounced checks, pawnshops, bank overdraft protection, late fees on payments, informal extension agreements with creditors, etc.
Payday advance loans emerged as another way for families to deal with these challenges. And, as indicated by pretty phenomenal growth, it’s clear that the product is successful.
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