Our Readers' Views: Payday Lenders Do Not Trap Clients Into Cycle of Debt
The News Journal
May 16, 2009
by: Tommy Moore
The allegations that payday lenders trap consumers in a cycle of debt is not valid. Under our best practices, any customer who cannot pay back their loan when due has the option of entering into an extended payment plan, allowing them to repay the loan over a period of additional weeks. This option is provided to customers for any reason and at no additional cost.
We support educating and providing solutions for customers who may have become over reliant on the service.
State regulator reports show that more than 90 percent of payday advances are repaid when due.
These are businesses, not charities. It would not make good business sense to loan money to people who can't pay you back.
Tommy Moore
Community Financial Services Association
Alexandria, VA
