Consumer advocacy groups have long painted the payday loan industry – companies that provide extremely short-term credit – as evil and predatory. Now, the federal government has joined in.
Operation Choke Point, which involves government regulators informing banks certain businesses are “high risk,” and the Consumer Financial Protection Bureau (CFPB) exemplify the federal crusade against the payday lending industry. Ignore the fact that government itself promotes numerous programs aimed at helping “low-income” and “underserved” people take out long-term mortgages.
The demonization campaign against short-term debt seems to be picking up momentum. Unfortunately, it looks as though nobody cares that these efforts could hurt the people using short-term consumer credit services to help themselves.
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