Fed Chairman Ben Bernanke, testifying before the Senate Banking Committee today, said the best approach for reducing the reliance by consumers for payday loans is more competition. He further stated that banks and CU’s (credit unions) should be encouraged to develop and offer new products that could compete with payday loan “store-fronts”.
This makes the most sense to us as well. Let the market place develop products and solutions for today’s payday loan, auto title loan, rapid tax refund (RAL’s), customers. Competition will drive prices down and offer new solutions.
Government should not decide for the market place and remove consumer choice from the equation; EVER!
What do you think?