Banker defends payday lending
November 1, 2009 | federal legislation, industry | Comments (0)From an interview with BB&T Chairman John Allison:
Q. Are there any banking practices that the government should just condemn in order to protect consumers? Is there anything that bothers you on a moral level, like payday lending?
They should prohibit or punish fraud, which they do. But when you actually look at some of these (other) practices, you’re making judgments for people who may be in very different economic circumstances.
For example, if you close down payday lending, people end up going to loan sharks – who collect with a stick. Maybe we need to have a better education system and all that stuff, but as bad as payday lending may seem to be, people still want the money and they’ll go to loan sharks.
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