Talking Pay Day Loans

Posted: Apr 15, 2009 11:21 AM
Yesterday's Wall Street Journal included an interesting take on the controversial payday loan industry.

Though payday loans may not be your cup of tea -- this op-ed demonstrates that the alternatives are even worse.  As is usually the case when Congress wants to "reform" an industry -- and limit a consumers potential options -- consumers are the ones who lose.

It's also worth noting that the banking industry (which charges ridiculously high punitive rates for overdrafts) -- would prosper if the so-called Payday Loan Reform Act passes Congress.  (Did I mention the winners here tend to be large political donors?)   

... Though I found the op-ed interesting when I read it, I didn't decide to blog about it until I noticed something very interesting last night -- Stephen Colbert (of all people) -- talking about it!  

If you want to know just how organized the anti-payday lending forces are, it seems curious to me that the same day this Wall Street Journal op-ed hit, Colbert did a two-minute take-down of the industry -- and also took down a Member of Congress whom the anti-payday folks despise (it starts six minutes in).