Dear Mr. O’Connell–
I’m disappointed that a financial reporter would render judgments regarding payday loans, and by extension, insult their users. Your last sentence is both insulting to the consumer and demonstrates a regrettable ignorance,
“Whatever the reasons, too many women (and plenty of men) are getting fleeced on payday loans, apparently with full knowledge of the bad deal they’re handed.”
Brian, has it occurred to you that the reason 12 million people take out payday loans every year, and the reason the product has been around for 22 years, is people know exactly what they are doing, and think it’s a GOOD DEAL?
There are many options for short term credit — borrowing from a friend or family member or employer, pawning something, taking out a credit card cash advance, or bouncing a check (which is what folks used to do before payday). Yet the free market has handed people an option they have chosen repeatedly, and that a George Mason University study showed had a satisfaction rate of almost 90%.
YOU may think it’s a bad deal. But you are not the one taking out the loan, and I’m going to guess you’ve never been in that position, either. Stop insulting the consumers and the product. For once, how about a story showing the POSITIVE aspects of payday loans? I’ve been in the business both as a journalist — just like you — and a financier. I can give you all the information you need.
Please take me up on it.
PDL Capital, Inc.