A bipartisan poll conducted by the Republican-leaning Tarrance Group and the Democratic-leaning Global Strategy Group has found that the people who use payday products strongly approve of them.
Ninety-four percent of borrowers surveyed for the poll agree that payday loans “can be a sensible decision to get needed cash when faced with unexpected expenses,” the Free Beacon writes…
“Those who use payday loans have limited alternative sources of credit, such as pawn shops, bank overdraft protection, credit card cash advances (where available), and informal lenders,” according to George Mason University law professor Todd Zywicki. “Although expensive, payday loans are less expensive than available alternatives.”
In addition to their comparable expenses, “payday loans are very simple and very transparent loans with a small number of terms, especially when compared to especially complex products such as mortgages or credit cards,” Zywicki explained in a 2009 paper.
Tarrance-GSG poll respondents overwhelmingly agreed on that point. Ninety-six percent of borrowers said they understood how long it would take to repay their loan, 95 percent said they understood the fees they would pay, 93 percent said the lender “clearly explained” the terms of the loan, and 85 percent said the lender explained what would happen if it weren’t repaid.
Nearly three quarters of borrowers said they “received better treatment from [their] payday lender than [they] received from a bank or credit card company.”