As more statistics are gathered regarding payday loans and payday advance providers, we learn more about the realities of these short-term products and fortunately for policy makers have to rely less on the anecdotal experiences repeated ad nauseum by biased consumer activist groups. In the attached report, researchers at Clemson University reveal data that suggests that legality of payday loans in a state does not increase bankruptcy percentages amongst state residents. For years leftists consumer group such as the Center for Responsible Lending, the Coalition of Religious Communities, ACORN and the Consumer Federation of America have falsely repeated time and again that allowing consumers to utilize payday loans increases the probability of bankruptcy amongst consumers. The Clemson Study debunks this myth. Those interested in ready a synopsis of the study can view it here or the full study here.
Policy makers looking to take action against these short-term payday advance loans should carefully review pertinent payday loan studies before making rash decisions at the behest of consumer groups. The findings of the Clemson study is simply another example of how the fact surrounding payday loans reveal how useful a financial tool it can be for those looking at short-term financial needs.
