Some very insightful comments!

Another aspect of this discussion is that ACTUAL consumers of payday loans rarely attack our industry. The folks who use us are generally more satisfied with our disclosure of rates, our underwriting criteria and the hours we’re open than they are of banks and credit card companies. More than one outside, independent study has been done to confirm this.

It’s the so-called consumer protectionists (who have their own agendas) and our competitors (there are plenty of other industries who covet our customers) that want us to go away.

Lucky for us, payday loan consumers by the millions “vote” for us every year by continuing to use our payday loan products and services.

Here’s some ammo from the UK to rightfully battle the anti-payday lender statistics you’ve mentioned in your article.

http://www.debt-free.org.uk/blog/overdraft-charges-more-expensive-than-payday-loans-12-02-10

Also, it’s “interesting” (disgusting really) that the only way to really gather support for the opponents to Payday Lending, they MUST distort the facts!! If one were to simply debate truthfully and logically about the pros and cons of Payday Lending, you would find that almost any argument AGAINST Payday Lending could be satisfied with LOGIC!!

-APR’s are too high! - Well, APR’s aren’t meant to be calculated on short-term loans. A 30% APR on a 30 year mortgage represents a much higher percentage of the initial amount borrowed, than 1000% APR on a 2 week loan. Simple math, but most of the ammo against our industry seems to be the plain ignorance or distortion of percentages and numbers. Not lies, just pure, calculated misrepresentation of the figures, to shock the average Joe who could care less about calculating APR percentages.

-The cost of a Payday Loan is WAY too high! It’s “predatory” and unjustified.. - When you consider the high % of customers defaulting (we are dealing specifically with people who have bad credit or no other finance options) on their loans and the cost associated with giving a Payday Loan (ACH fees, background checks, operating and licensing fees) I would think that a mere $15 or so per $100 seems about right, wouldn’t you?

-People get caught in a lending “trap” by extending their loans. - That can be fixed WITHOUT shutting down the industry, (and YES putting a 36% APR cap on Payday Loans is essentially shutting down the industry) by putting a limit to the number of rollovers allowed (Virginia and Oregon for example). Wow, you don’t have to be a genius to figure out an answer to that objection! Yet some states seem to be having a hard time “regulating” and seem to be protecting the interest of big banks (after all, last year big banks made about 38 BILLION in overdraft fees…) by limiting the people’s options for short-term credit options.

-Gabriel Rodriguez
Synaptic Payday Loan Software Solutions

Jason

Thank you!!
Mike