A well-respected Washington think tank analyst writes in a new column that the type of short-term loans made by members of The Ohio Consumer Lenders Association (OCLA) “provide a needed service that protects many people from hardship.”
“For the people who need them, (short-term) loans can be a lifeline,” wrote Thaya Brook Knight, Associate Director of Financial Regulation Studies at The Cato Institute, a non-partisan Washington-based public policy research organization and Libertarian-leaning think tank that bills itself as “dedicated to the principles of individual liberty, limited government, free markets and peace.”
Writing in The Hill, which covers Congress and the federal government, Brook Knight takes on a recent study by the Pew Charitable Trusts that is critical of the short-term lending industry.
She points out that the Pew study found that 81 percent of short-term borrowers said that if they did not have access to payday loans, they would cut down on expenses such as clothes and food.
“The fact that people buy food with their loans is not an argument for abolishing them,” Brook Knight wrote. “People having enough to eat is a good thing.”
Read full column at The Hill.