“Ignorance”
October 27, 2009 | California, industry | Comments (0)Larry Meyers ain’t happy with the Long Beach Press Telegram:
The Long Beach Press Telegram demonstrates the usual ignorance with regards to payday loans. Payday lenders no more “target” low income neighborhoods than fast food chains “target” truckers at exits on interstate highways. The Telegram perpetuates the already disproven myth that minorities take out more payday loans than non-minorities. They mention a “study” that allegedly shows correlation between PDL borrowers who get loans and subsequently file for bankruptcy without ever citing the specific study by name.
They claim the rates are “extortionist” without ever placing the flat fees charged in context with other forms of short-term credit, such as ODP/NSF fees, which are three times more expensive. This foolish editorial mentions that in states where PDLs have been banned, the CRL – itself a dubious organization – is a good thing, failing to mention that more than one real non-partisan study, which I cite here by name, says exactly the opposite. The Telegram also claims that “hundreds of commercial banks and credit unions offer similar small loans at reasonable rates”.
Editorial writers have a history of leading with their ideology, not facts. This is true of their coverage of many industries.
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