Why is it the Dallas editorial board and its reporters ignore the most important aspects of this issue:

1) Reporters and consumer “advocates” are the only ones complaining. The Better Business Bureau fielded only 3,300 complaints over 100 million transactions in 2012. I’m betting the TX DMV has a complaint rate worse that this 0.0033%.

2) The News was perfectly fine with a 4 rollover limits. But members of the industry’s trade association already limit rollovers to 4, and only 14% of all loans were rolled over more than that. Again, any problem with the product exists in the minority

3) “Killer fees”? Says who? The very fact that consumers have choices, which I outlined in my editorial:

http://www.dallasnews.com/opinion/latest-columns/20130410-lawrence-meyers-payday-loan-cycle-of-debt-is-a-false-narrative.ece

…and was ignored by Sharon Grigsby in hers (why, Sharon?), tells us they don’t consider the fees to be “killer”. Why can’t the News let people make their own decisions about what is or isn’t too expensive?

4) The industry DID agree to reasonable reform. But it was the OPPONENTS who went nuts, and tried to put the industry out of business by introducing a 36% APR rate cap. Where’s the reporting on that?

Now the News wants to limit how lenders advertise to people!

This all stems from a false narrative, namely, that payday loans are “bad”. Yet the News repeatedly ignores the obvious — that consumers LIKE THEM. Payday loans have existed for 23 years, and other choices are available. When will the News wake up and accept the fact that they have been duped by consumer “advocates” whose sole job is to demonize a viable credit product so they can continue to reap the millions in grants and contributions they make every year?

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