Payday loan bans hurt consumers
April 23, 2010 | Colorado, industry, regulation | Comments (0)From a guest op-ed in the Denver Post:
Economists agree: Eliminating payday loans as an option for consumers has disastrous consequences for those who utilize them. We’ve already seen what happens when other states outlaw these short-term infusions of cash. It remains to be seen whether Colorado will fall into the same trap.
Comparing Oregon, which has placed a rate cap on payday loan that drove three-quarters of the lenders out of business, to Washington, which has no cap, Zinman measured both subjective assessments (i.e., how people felt) and more objective measures like employment status. He found that people fared worse in both regards.
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