Legislation that leads to loss of payday lenders could harm many

Mike Sussman of The Newark Advocate made the argument yesterday that banks and credit unions are unlikely to offer more attractive credit alternatives to payday loan borrowers and that the loss of payday lenders in Ohio could inflict more harm on consumers who are already facing a myriad of financial pressures.

Sussman also mentions who has had the most input in the legislative process in Ohio. While I think many Canadian provinces are doing their best to incorporate a wide range of feedback into their regulatory work, the one voice that we haven't heard enough from up here is the consumer's.

From Mike Sussman of The Newark Advocate:
"Banks, credit unions and small lending divisions of major financial institutions have had the most input. These are the folks with deep pockets that are used for huge donations to our Ohio legislators. Lately, arguments have surfaced that this group of traditional lenders could meet the needs of the payday borrower. Nothing could be further from the truth."

"Payday lending, while expensive, is the last line of defense for the financially overburdened low credit score consumer. Taking this option away will only increase the amount of hardship in a state already overwhelmed by foreclosure. Consumers, unlike Bear Stearns, will have nowhere to turn for immediate financing."