Looking to Preserve Choice in the Upcoming Election

Lately, Congress has been wrestling with financial and economic matters of truly global importance. The recent debate surrounding the bailout of the financial sector highlighted just how interconnected Wall Street is to Main Street and the United States is to the rest of the world. And while providing hundreds of billions of dollars to mainstream financial institutions captured the attention of the media and, indeed, the country, on November 4th voters in select states have a chance to weigh in on other finance-related matters that could have just as much impact on consumers.

Voters in Ohio and Arizona will be voting on ballot referendums that will determine whether or not payday advance loans will remain a credit option for people in those states. There are strong advocates on both sides of this issue, and there are certainly arguments to be made for and against continued availability for this product. But one thing is clear, if PDAs are not permitted, those consumers who depend upon them from time to time to meet unexpected cash shortfalls will be forced to use other, more expensive alternatives, such as bank overdrafts.

To enhance trust in these products by consumers, not to mention that of regulators and legislators, it is important that strong consumer protections accompany any implementing regulations that may be needed following the November 4 referendums. However, there should be little debate as to the importance of making this credit option available. The alternatives are simply too expensive.