I read an pretty well written opinion by Rebecca Lightsey titled: High-cost lenders profit from desperate times.
I think it’s pretty well written, although I do not agree that payday lenders are benefiting from the bad economy. First, payday lenders rely on their borrowers having a job. If people don’t have a job, they can not get a loan.
Regardless, this should be a call to action for CSO’s (Credit Services Organizations) to add value to a cash advance transaction. If they don’t, they will be eliminated. This is a good model and if the CSOs do not protect it, by creating some guidelines to follow, it’s only a matter of time.
Comments
One response to “CSO’s in Texas going strong”
Nick,
I agree completely with your comment over at DallasNews.com. We in the payday loan industry MUST refrain from using various short-term strategies to circumvent state laws regarding payday loan products. If we abuse the statutes they will simply be closed one-by-one.
Whatever our business strategies are, if they are PERCEIVED to be taking advantage of consumers, eventually our payday loan products will cease to exist. That would not be good for us or our customers.
Lastly, I applaud your continued efforts to “get out the word” regarding our industry and the facts!
JerJer