Both sides make very good arguments. On one hand, it’s a tough world. On the other hand, people should have the freedom to choose.
Stan Barnes makes some good arguments in this opinion in the Arizona Daily Star, especially this comment:
“Every day it seems another self- appointed know-it-all with an ax to grind is in the news, blaming payday lending for all of society’s ills and demanding the industry be run out of town before every one of us is beguiled into bankruptcy.”
The truth is that everytime someone takes out a payday loan, they say “Yes”. Everytime they don’t take one out, they say “No”.
People fail to recognize that there are rules in place and these places are regulated.
Where I think the industry gets in trouble is that they claim they’re saving people from paying nsf fees, but when the borrower doesn’t pay, they deposit their check. If it bounces, the consumer ends up paying the interest and the nsf fee that they tried to avoid in the first place. There is also post maturity interest and late fees. Sometimes the borrower gets more than they bargained for.
In the industries defense, there are way too many people not paying loans back. There needs to be a healthier medium.
