Critics of the payday advance industry claim to represent the best interest of the consumer, yet they want to limit the few short-term credit options available. Eliminating payday loans does not eliminate the need for short-term credit.

Instead it forces consumers to choose between costlier alternatives, such as fees for bounced checks, overdraft protection, late bill payments or even unregulated offshore Internet lenders.

Payday advances play a necessary role, providing hard-working people with a reasonable, well-regulated option for meeting unexpected expenses and other short-term financial needs. This industry exists because we offer our customers a product that is more desirable than the alternatives.

No one is offering any other choices to payday loans. To date, almost all other options have either been charity-based, required government subsidies, unavailable to the general public, unprofitable or unsustainable.

The payday advance industry has taken unprecedented voluntary actions to protect and educate consumers. In 2007, we backed those actions with a $10 million consumer education campaign and community-based financial literacy programs.

We have voluntarily introduced strong disclosure rules, an extended payment plan, partnerships to promote financial literacy and we support educating and providing solutions for customers who may have become over-reliant on the service.

Source :: montgomeryadvertiser.com