Unified Government shouldn’t restrict loan shops
Kansas City Kansan
December 3, 2008
by: Tim Miller
The Kansas City Unified Government shouldn’t be interfering with the personal finances of its constituents (“Ordinance sets restrictions on KCK payday loan shops,” November 26). Taking away credit options like short-term payday loans will only hurt consumers.
Council members fail to realize that when short-term payday lenders close their doors, their customers are often forced to resort to less desirable and more expensive alternatives to make ends meet.
Two weeks ago, an article in the New York Times Magazine highlighted the difficulty of accessing consumer credit facing many Americans. The article took a balanced look at the services offered by short-term payday lenders, finding that payday loans are a valuable financial tool, since they offer easy-to-understand conditions, with “no surprises, no hidden fees,” unlike many banks, which are offering these same kinds of loans but without being demonized by media and political elites. On the heels of the Times article came a Dartmouth College study looking at a 2007 payday lending ban in Oregon. They concluded that banning financial options ended up hurting Oregon borrowers, and forced them to turn to inferior substitutes like bounced checks.
Tim Miller
Center for Consumer Freedom
