As loan vehicles, so-called “payday loans” are highly singular animals. Largely unregulated by federal authorities, a national industry comprised of such lenders has sprung up across the country, which includes many participants in Texas.
There is certainly a wide divide existing in the opinions of industry commentators regarding the particulars of such loan instruments. On the one hand, and as noted in a recent media overview discussing payday loans, they have been termed “scams” by consumer groups. On the other hand, a spokesperson for the country’s biggest payday lending outfit calls them “a viable credit option.”
It might be useful to think of a payday loan as synonymous with a burning match held between the fingers of a cold person in the woods. That individual might be able use the match in a timely and effective manner by quickly lighting a fire. Conversely, of course, holding onto the match for too long yields another result entirely; it renders the person who would profit from its use a victim by burning indiscriminately.