Every year millions of Americans responsibly use payday loans to help solve short-term credit needs. Customers look at their options and make a reasonable choice. They tell us that they use payday loans to avoid other fees. They choose between bouncing a check or overdraft protection, incurring late fees on routine bill payments, borrowing from friends, family or church, taking out a cash advance on a credit card or taking out a payday loan. All of these products have a cost associated with them. Payday loans can be a less costly, desirable option.

Restricting access to payday loans and other financial products through licensing laws or zoning laws stifles competition. Consumers benefit most when they can easily choose from many different financial products.

Tommy Moore

executive vice president

Community Financial Services

Association of America

Alexandria, Va.