To The Editor:

Dick Conville’s op-ed (“Payday Loans Don’t Serve Those in Need”, 10/22) omits important points regarding payday loans, which is typical of those who have never actually used the product. He postulates a minimum wage worker earning $1,160 monthly taking out a $500 loan. This would never occur, as payday lenders limit loans to 25% of gross monthly income. Thus the hypothetical customer would only be permitted a loan of $290. Mr. Conville thus reaches a faulty conclusion that the borrower is “trapped” in a loan he cannot repay. And of course, Mr. Conville omits the fact that the borrower might actually have the mental capacity to plan ahead, and know how much he can borrow and be able to repay. Indeed, 94% of all loans are repaid on time, as evidenced by the SEC filings of publicly held payday loan companies.

The grander conclusion that payday loans do not serve those in need is also faulty, as evidenced by the fact that the product has been in existence for 22 years, and is used by 12 million people annually. A George Mason University survey also demonstrated a product satisfaction rate of 90%.

If Mr. Conville really wants to know if payday loans help folks, then he should pay a visit to that new payday loan store he spotted and talk to the consumers. He’ll be surprised.

Lawrence Meyers

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