There is a real difference between “payday loans” and standard personal and traditional installment loans which are today more affordable in a time when many consumers are in need due to economic and employment challenges. As well, for personal installment loans the interest rate is not the best indicator of cost. The length of the loan, as well as the fixed monthly payment are often better determining factors in a consumer’s decision-making.
Yes, protect consumers, but don’t hinder consumers’ choices when they need financial help in a time of need.
Bill Himpler, Washington, D.C.
The writer is CEO of American Financial Services Association.