There are worse things for consumers than short-term payday loans
Charleston Daily News
January 16, 2009
by: Tim Miller
Legislators and interest groups who want to cap interest rates on short-term payday loans, which would essentially ban the service, ignore the increasing number of constituents and hard-working consumers who are struggling to gain access to credit in today's economy.
Shutting down the short-term payday loan industry only forces these borrowers to resort to less desirable alternatives to make ends meet.
Contrary to legislators' claims, a Dartmouth College study found that a 2007 ban on payday lending in Oregon hurt borrowers, who were forced to turn to more expensive alternatives like bounced checks, overdrafts and credit card cash advances.
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.
Tim Miller
Washington D.C.
Miller is communications director for Center for Consumer Freedom, a nonprofit coalition of restaurants, food companies, and consumers working together to promote personal responsibility and consumer choices.
