Short-term lending alternatives missing

I want to take this opportunity to address The Sun's May 12 editorial "Payday loans a bad deal, but allow the choice."
 
As the debate over payday lending plays out in the legislature and among the citizens of Arizona, it is important to see both sides of the argument, as this editorial has. Time and time again working adults are best served when given a variety of options and trusted to make financial decisions based on what's best for them and their families.
 
Eliminating payday loans as an option does not eliminate the need for short-term credit. Instead it forces consumers to choose between more expensive alternatives such as fees for bounced checks, overdraft protection or late bill payments or even unregulated off-shore Internet lenders - all products or fees which consumers say they use payday loans to avoid.
 
Additionally, no one is offering any real alternatives to payday loans. To date, almost all of the attempts to create payday loan alternatives have either been charity-based, required government subsidies, unavailable to the general public, unprofitable or unsustainable.
 
Eliminating payday loans and restricting choice is not the answer. Consumers need viable short-term credit products to allow them to make the best decision.


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TOMMY MOORE
Community Financial
Services Association