Payday Loan Myths, Cont.
Myth: Outspoken anti-payday “activists” are looking out for consumers best interests.
The reality is that much of the criticism surrounding payday loans is unfounded, unproven statements proliferated by anti-payday activists.
If they truly had consumer’s best interests at heart, they would realize that by running payday loan lenders out of business, they would be further limiting the already few options for short-term credit available. In most cases, these activists have taken it upon themselves to speak for the public – many of which rely on cash advances on a regular basis as a responsible borrowing alternative to bouncing checks, defaulting on loans or borrowing from scrupulous loan sharks.
For example, how does a $100 payday loan compare to other options?
$100 payday advance with a $15 fee = 391% APR
$100 bounced check with $54 NSF/merchant fees = 1,409% APR
$100 credit card balance with a $37 late fee = 965% APR
$100 utility bill with $46 late/reconnect fees = 1,203% APR.
