CFSA Media Coverage

The following articles, op-eds and editorials were published in national, state and local newspapers from around the country. They are provided to give you a broader view of payday lending.

More in middle class using payday lenders Los Angeles Times (December 24, 2008) This article discusses how short-term loan stores are growing in suburban areas as the economy worsens. Critics feel that these loans trap the working poor; however, lenders say they provide a needed service.

Several studies find evidence for, against benfits of payday loans BillingsGazette.com (December 22, 2008) In this article, Ed Kemmick discusses research findings on both sides of the payday lending debate.

Payday Loan Rate Cap in Oregon Has Harmed, Not Helped Oregon Households MarketWatch (November 12, 2008) This study, conducted by Professor Jonathan Zinman of Dartmouth College and circulated by Consumer Credit Resource Foundation (CCRF), seeks to evaluate the effects of interest-rate and loan-term restrictions imposed by the State of Oregon in 2007. "Like some other studies, these results suggest that access to credit, even if expensive, can help some people make productive investments and help others manage their cash flows through emergencies," Professor Zinman said.

Voters have duty to get rid of careless laws Columbus Dispatch (July 19, 2008) In this letter to the editor, Marc Kilmer a policy analyst for Buckeye Institute for Public Policy Solutions, concedes that voters have the ability to weigh the benefits and drawbacks of the payday lending referendum in Ohio. He said, "While voters certainly must be careful to do their research on this issue, the idea that voters should beware of 'statutory chaos' is overblown."

Predatory Reporting on Payday Lending? STATS.org (July 18, 2008) In this published article, STATS concludes that recent coverage of payday loans illustrates a tendency by the media to deal with social problems by fixating on a “villain” instead of examining the complex social problems and trends present in today’s society.

Thousands Rally for Payday Lenders NBC 4 Local News (May 6, 2008) In this piece, NBC Channel 4 in Columbus, Ohio reports on the Statehouse lawn rally held on Tuesday, May 6th in protest of Senate bill HB 545 that would essentially shut down the payday advance industry in Ohio.

2,500 protest at the Statehouse against payday-lending restrictions The Columbus Dispatch (May 6, 2008)

Payday lending is examined The People's Defender (May 9, 2008) In this editorial, Senator Tom Niehaus explains how the passage of  HB 545 in its present form will eliminate an option for thousands of Ohioans. He said, "It will punish the responsible for the actions of the irresponsible. If we applied this logic to driving, no one would be permitted to drive."

I'd Gladly Pay you Tuesday for a payday Loan Today America Legislative Exchange Council (May 2008) In this opinion piece Michael Hough, Director of the Commerce, Insurance & Economic Task Force at the American Legislative Exchange Council writes about recent legislature being considered in several states to cap annual interest rates on small consumer loans. He concedes, "This 'nanny state' legislation deprives all consumers the freedom to take out payday loans for the sake of protecting a few consumers who made irresponsible financial decisions."

New Survey Exposes Flaws in Ohio Payday Lending Legislation  FindLaw For Corporate Counsel (April 30, 2008) "This survey shows that almost nobody would be willing to lend money at the rate which Ohio legislators want to cap short-term loans", said Tim Miller, Communications Director at the Center for Consumer Freedom.

COUNTERPOINT: Reining in payday loans Rocky Mountain News (February 23,2008) In this op-ed, Darrin Andersen, president of Community Financial Services Association, concedes that the proposed legislation to eliminate payday lending in Colorado "denies their [consumers] freedom and forces Coloradans to suffer the consequences."

CFSA responds to Wall Street Journal story CFSA responds to inaccuracies in Wall Street Journal February 12, 2008 article, Social Insecurity: High-Interest Lenders Tap Elderly & Disable.

Who uses payday loans? Not who you might think. The Virginian-Pilot (January 29, 2008) This article discusses research detailing the location of payday lenders in Virginia. "But an analysis by The Virginian-Pilot reveals…lenders are targeting middle-income neighborhoods, usually near shopping malls, and avoiding poor areas."

Big Nanny Puts Her Foot Down – No More Payday Loans! Carolina Journal Online (January 11, 2008) This op-ed discusses how banning payday lending in North Carolina hurt consumers and took away a viable financial option.

Why Many People Use Payday Loan Services Instead of Using Banks Wall Street Journal (January 30, 2008) In this letter to the editor, Darrin Andersen responds to the Clinton/Schwarzenegger initiative to bring the "unbanked" into the financial services mainstream, expand access to credit and provide financial literacy programs.

Poverty, Not Payday Lenders, Is Our Enemy The Decatur Daily (January 13, 2008) In this article, Eric Fleishauer discusses how regulating payday lenders out of business will hurt consumers. He goes on to say that payday lenders are, "responding to the market incentive to fill a demand."

Good intentions pave way to financial ruin The Roanoke Times (January 11, 2008) In this op-ed, David W. Kreutzer, a senior economist with the Employment Policies Institute, discusses how consumers would be adversely affected if a 36% APR rate for lenders was to be imposed in Virginia.

Community Commentary: Payday loans have a role to play in N.H. Foster's Daily Democrat (January 13, 2008) In this op-ed, New Hampshire State Representative Marshall Quandt, makes a strong argument for the value of the payday lending industry. He describes the needed service that the industry provides and how eliminating it would harm consumers.

Cap on payday loans would hurt those most in need The Daily Press - VA (January 7, 2008) “For centuries, the proud independence of its citizenry has kept the Commonwealth of Virginia at the forefront in the fight against overbearing government. Forfeiting this role for feel-good legislation is a big step in the wrong direction — especially when the legislation harms those it's intended to help.”