"Payday Loan Rates Are Too High," Says The Banks
The banks in this country loudly profess that payday loans do more harm than good! Their supporters (read: employees) are quick to point out that unrestricted access leads to over-borrowing, justifying regulation standards. However, the truth is that as the use of payday loans has grown, consumer financial welfare has improved (people typically borrow only if there is a benefit for them).
Now, without payday loans, the economy would be hurting even more, which the banks won’t tell you about! A payday loan may actually be the lesser of two evils, particularly if not getting a loan means missing a credit card payment or bouncing a check. However, it’s only when people fail to ever pay back a payday loan (the samepeople who would never pay back a bank loan, it should be noted) that they get into trouble with payday loan debt.
My point is that the payday loan companies aren't just raking in pure profit. They have to pay bills, just like everyone else. At the end of the day they walk away with maybe $15 per transaction (try saying the same for the banks, who are making huge profits off of their hidden rates and fees that they charge). Sure, banks can charge lower interest rates on their secured loans, to those borrowers with outstanding credit, but these people are not in the payday loan target market of those who will more than likely never be approved for a bank loan anyways. Where are these people supposed to turn to for emergency help? Now, if anyone thinks payday lenders are making these gigantic oversized profits off of the backs of the poor and elderly, please read on …
I seriously suggest taking all the research that has ever been done on this industry, and showing it all clearly to the public. This will probably never happen, because it’s a lot easier for the bank to blame the payday loan industry, who is cutting into their profits, than show people that payday loans have their place in our American culture, when they are used correctly! Instead, these companies are plastered all over the news as criminals! “Payday loan rates are way too high,” they scream! To those same people, I say this, “Why the unfair depiction of something that has helped millions of everyday citizens get through a temporary crisis, while you guys said ‘NO’ to each one of their faces?”
People, as long as we remain a Capitalistic society, there will always be money problems for the majority, and a million different opinions on how to fix this problem. Now here goes a good question: how about letting people decide for themselves? Here’s another: why not come up with a better option? If you’re waiting for the banks to answer either one, don’t hold your breath, because they never will (the truth hurts)!
