As the town of Columbia, Missouri continues to debate laws that adjust zoning laws to limit payday loan businesses from opening, some representatives from the industry are attempting to clear up facts regarding how important payday lenders are for many people.
One week after an article published in the Columbia Missourian that criticized the number of payday lending services in Columbia and questioned their need to exist within the town, a response to it was written by Tom Linafelt – the director of corporate communications for QC Holdings, a payday lending company – and published on Thursday.
In the letter, Linafelt argued that payday lenders were necessary for those who could count on them for funding that helps avoid damage to one’s credit rating.
“Payday loan borrowers are often making reasonable choices to proactively manage their finances in the face of more onerous circumstances,” Linafelt wrote. “In fact, the vast majority of short-term borrowers fully understands and accepts the associated fees, and uses the product as it was intended – a short-term solution to urgent, unexpected financial needs.
He added that lenders also offered extended payment plans for borrowers who had trouble paying back their loans on time, eliminating their need to renew loans and add on more debt.
