Debunking the myths of payday lending
A flawed payday loan system, according to Knight, still provides a valuable lifeline to those who need it. But if the existing system puts the credit and future of its borrowers at risk, how valuable can it truly be? The solution, Knight says, is to develop new and better products to compete with payday lenders. On this point, we agree. Consumers should have expanded options not just to get the best deal available, but to avoid having to enter into an agreement with a predatory payday lender.
That is why I have partnered with the Coalition for Safe Loan Alternatives, an organization that brings together local banks, community and religious organizations and consumer advocates nationwide to develop innovative alternatives to payday loans. Already we’re seeing that work pay off. One of our coalition members, Employee Loan Solutions, offers affordable, safe loans through their TrueConnect program.