The Bellefontaine Neighbors City Council shouldn’t be interfering with the personal finances of its constituents (“Ordinance tightens payday loan rules,” Nov. 13). Taking away credit options like short-term payday loans will only hurt consumers.

Council members fail to realize that when short-term payday lenders close their doors, their customers are often forced to resort to less desirable and more expensive alternatives to make ends meet.

Just this week, an article in the New York Times Magazine highlighted the difficulty of accessing consumer credit facing many Americans. The article took a balanced look at the services offered by short-term payday lenders, finding that payday loans are a valuable financial tool, since they offer easy-to-understand conditions, with “no surprises, no hidden fees,” unlike many banks. On the heels of the Times article comes a Dartmouth College study looking at a 2007 payday lending ban in Oregon. They concluded that banning financial options ended up hurting Oregon borrowers, and forced them to turn to inferior substitutes like bounced checks.

Tim Miller

Center for Consumer Freedom

Washington D.C.