The Provo City Council shouldn't be interfering with the personal finances of its constituents (Provo eyes restrictions on payday loan stores, 8/16). Taking away credit options like payday lenders will only hurt consumers.
Payday stores charge $15 for a $100 two-week loan, a real-life interest of 15%. To reach the dramatic interest rates mentioned in your article, a consumer would need to "roll over" their loan an astonishing 26 times -- an occurrence so uncommon that it is ridiculous to use that figure as a reference point.
Additionally, a 2007 Federal Reserve Bank of New York study showed that when payday loans were banned, more expensive options like bounced checks and bankruptcy filings increased. Especially with Americans strapped for cash between paychecks and looking for ways to make ends meet in today's tough economy, it is unfair to punish those in need of a financial lifeline.
Consumers need more borrowing options, not fanatical politicians pushing elitist "feel good"Ôø1/2 regulations.
