Advocates are continuing to come out in support of payday loans despite continued attacks on the industry from groups alleging they are unnecessary.
Sarah Longwell, the communications director for the Center for Consumer Freedom, recently wrote a letter to the Osh Kosh Northwestern published on Sunday supporting payday lenders and the role they play throughout the state.
"Imposing unrealistic fee caps on payday loans to kill the industry will leave consumers – already struggling in today’’s economy – without vital access to short-term credit," Longwell wrote.
The letter was written in response to a letter published in the paper earlier this week that called payday loans "predatory" and taking advantage of consumers who may be dealing with monetary issues.
Referencing research from the U.S. Federal Reserve, Longwell said that payday loan borrowers were not unhappy, nor were they being preyed upon by lenders. Instead, she said that 88 percent of short-term borrowers were "satisfied" with their loans.
"It would be shortsighted and elitist for politicians to make snap judgments about financial services they have never needed themselves, and to prohibit financial options without thought of the consequences," she added.
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