Far From Trouble, Payday Loans are Responsible Credit

The recent Star Tribune special report “Borrowing Trouble” quoted antibusiness spokesmen comparing companies providing payday loans to prostitutes and loan sharks. Great hyperbole, but bad journalism.

As president of Unbank, which has been doing business in Minnesota for more than 20 years, and on behalf of the 50 employees and the consumers who use our 12 locations, I take great exception to these characterizations. The Aug. 15 article “Costly loans turn payday into debt day” ignored some basic realities and misused statistics to back a flawed viewpoint.

We can all agree on one thing: Many Americans owe a significant amount of money to mortgage lenders, credit card companies, auto finance firms and other lenders. Managing that debt is an issue for consumers in a culture where savings rates are low and the need for material goods appears boundless. Rather than address these issues, the Star Tribune attacked a lawful, regulated and responsible industry that provides a service consumers need and want.

Writers Ron Nixon, Terry Collins and Dee DePass used a variety of statistics, many from national sources and antibusiness lobbyists, to attack the Minnesota payday loan industry. When closely examined, these statistics actually support the valuable service payday loans provide.

For this complete story, please visit Far From Trouble, Payday Loans are Responsible Credit.