In 2004 and 2005, the states of North Carolina and Georgia passed laws that banned even licensed payday loan lenders from serving the citizens of their states. But when the lenders left, the bounced check penalties and bankruptcies increased.

A New York Federal Reserve Bank study reported that in the years following the payday loan ban, consumers in Georgia paid $36 million more in bounced check penalties and the number of people that filed for Chapter 7 bankruptcy increased by 8.5 percent. In North Carolina, complaints about debt collectors rose by a third or more each year.

Despite the negative financial repercussions that occurred when consumers were denied these often vital emergency credit options, more and more states are proposing payday loan bans of their own. Ohio and Pennsylvania recently pushed lenders out of their borders and states such as Maryland and Arizona are quickly following suit.

However, there is a grassroots organization that is trying to protect consumers’ rights to access emergency short-term credit. The Consumer Rights Coalition is made up of well over 100,000 hardworking Americans that are speaking out to tell lawmakers that they don’t want their financial options taken away.

With current economic factors making it harder for families to make ends meet and new financial regulations cutting back on access to traditional credit, emergency cash advance services are quickly becoming the last financial option for many Americans. Once this financial option is taken away, these consumers will be faced with expensive and dire repercussions, including pricey NSF fees, credit card and utility late fees and even bankruptcy.

If you want to join the fight to protect your right to short-term credit, join the CRC today. Only by joining together can hardworking Americans let their representatives know what is truly best for their financial freedom.

Learn more about the Consumer Rights Coalition and upcoming state and federal legislation.