Payday lending is unfairly demonized
Roanoke Times
January 9, 2009
by: Tim Miller
Contrary to inaccurate portrayals of the industry, a ban on short-term payday lenders would hurt borrowers, especially those who are already struggling for access to credit in this tough economic climate, ("Payday lenders still prey on Virginians," Jan. 6 editorial).
A Dartmouth College study found that a 2007 ban on payday lending in Oregon hurt borrowers who were forced to turn to inferior substitutes like bounced checks. A recent New York Times Magazine article also noted that payday loans are a valuable financial tool offering 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). Borrowers are best served when they have more -- not fewer -- choices to pick from.
TIM MILLER
Center for Consumer Freedom
WASHINGTON, D.C
