Thursday, June 18, 2015

Majority Of Borrowers Using Payday Lenders Are Very Satisfied With Service: Federal Regulations Will Shut Off Needed Credit Access To Payday Borrowers

From Washington Times, "Obama-Elizabeth Warren payday lender rules slammed by Florida Democrats" by Kelly Riddell:
"I’m under no illusion that payday lenders are saints or the best industry in the world. I would advise consumers against taking out payday loans if they can avoid them," said Joe Colangelo, the executive director of Consumers’ Research, an independent think tank. "There’s this well-intentioned desire to fix something that’s not fair, but by making it more difficult to access credit, you’re not fixing the problem, you’re just preventing people access to another avenue of credit. You’re pushing them toward the guys on the streets who will break their knees if they aren’t going to pay."
Last year, a survey from the Federal Reserve found two-thirds of Americans making less than $40,000 annually would have to sell something or borrow money to pay for a $400 emergency expense, making payday lending an attractive option.

Moreover, a study by George Washington University found 54 percent of payday borrowers were "very satisfied" with the service, as compared to 5.7 percent who were "very dissatisfied." [Emphasis added.]

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