Wednesday/April 23/2008
A study by the Federal Reserve Bank of New York concluded that payday loans are "not predatory" and may actually improve the lives of the people who use them.
“To the contrary, the report concludes that payday lenders may actually enhance the welfare of households by increasing the supply of credit,” said Darrin Andersen, president of the Community Financial Services Association of America.
Some key conclusions of the study:
“[Credit]...delinquency rates were marginally lower for risky households in states with unlimited payday loans.”
“Households with uncertain income who live in states with unlimited payday loans are less likely to have missed a debt payment over the previous year.”
“In the end, the simple fact that payday lenders have triumphed over pawnshops suggests that payday lending raises household welfare by providing a preferable alternative.”
Related Story
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment