Are payday lenders all that bad, really?

SANDUSKY The payday loan companies that offer small loans at gigantic interest rates aren't exactly
Tom Jackson
May 24, 2010

 

SANDUSKY

The payday loan companies that offer small loans at gigantic interest rates aren't exactly feeling the love these days.

An organization called the Ohio Coalition for Responsible Lending calls such loans "legalized loan sharking." Mayors from all of Ohio's biggest cities have issued a statement calling for such loans to be curbed.

And in Sandusky, Serving Our Seniors director Sue Daugherty has tried to focus attention on the hardships such loans create. Daugherty recently organized an informational session on payday loans and is readying testimony for a hearing that will be hosted Wednesday by Attorney General Marc Dann.

A new study by two economists, however, claims that the folks who turn to such payday loans would be even worse off if they were taken away.

Read the story now in our complete online newspaper or in Sunday's Register.