The Midland Reporter-Telegram lifts the body of the Better Business Bureau piece I wrote about a few days ago, and adds a few wrinkles.

The author wonders aloud about different options when one is short on cash.  “Ask for an advance on your paycheck? Borrow money from friends or family? Try to negotiate with the electric company?”

Consumers may choose any of those.  In fact, they have many options such as I’ve listed here.  But each of them comes with risk.  You can damage your relationship with your employer by asking for an advance.  You can damage your familial relationships by borrowing money and not paying it back to friends and family.  Those relationships are precious.

Did it occur to the author that people choose payday loans because they don’t carry the same risks?  That if they default, the worst that can happen is they get sent to a collection agency?

I don’t think that ever crossed the author’s mind.  Ever.

And while citing the 3,300 BBB complaints, the author fails to mention that this complaint rate was over one hundred million transactions.  That’s a 0.0033% complaint rate.

But does the author mention this? No.  I don’t think that ever crossed his mind ever, either.

Nor did the 99,996,700 other transactions that nobody complained about.

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