Payday loans are under fire again. John Oliver’s recent piece has got to be the most entertaining to date:
After detailing several scandals and abuses within the industry, Oliver offers polling data suggesting that many people believe payday loans are a necessary evil. Oliver’s response: “That’s why they are so dangerous: people actually need them. But you have to be absolutely sure there are no better options!” Of course, there is a lot of truth to that. Sarah Silverman then concludes the piece with a hilarious (and frightening) list of alternatives to payday loans to cover one’s short-term financial needs. Ironically, the list reaffirmed in my mind that there are many things worse than payday loans…
Also check out this ReasonTV piece in defense of payday lending:
Want to see a meta-analysis of studies showing the effects of payday lending and attempts to regulate it? See my post here. I also find that the payday lending model (absent notable industry abuses) has its virtues–here.