Tuesday, March 27, 2007

The following is a letter to the editor from The Kansas City Star:

It was gratifying to see some of our elected officials finally cracking down on the purveyors of payday loans.

Yet another denizen from the dark side of capitalism, taking advantage of the most needy and vulnerable Americans, has become big business. Folks who barely get by from one payday to the next are put in a hole, handed a shovel and told to keep digging.

They pay for “free” credit reports that tell them they have poor credit. Car dealers push “no down payment” auto loans with interest rates that make credit card rates look cheap. And on it goes — getting the most out of those who have the least.

What prompted me to write was the new warm and cuddly ad being run on behalf of the payday advance industry. Yes, these people have an association — the Commercial Financial Service Association. And they’re running ads cautioning us to take out our payday loan only for short-term emergencies. Like eating, maybe?

The first ad I saw ran behind a Mercedes ad on CNBC. The next time I saw it was during a mystery on BBC America. Is this the TV audience most likely to get an instant payday loan?

This isn’t about cautioning people about the pitfalls of payday cash loans. It’s a blatant public relations campaign trying to convince regulators that there’s no need for regulation. It’s trying to convince us that these are fine, upstanding businesses that would never, ever take advantage of working men and women needing a little help to get by for a week or two.

If you believe that, your check’s in the mail.

This entry was posted on Tuesday, March 27th, 2007 at 2:43 pm and is filed under Missouri.