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The Nov. 18 business article “Payday loans hit pay dirt” suggests that consumer demand legitimizes the excessive rates being charged for these loans. This ridiculous assumption overlooks the fact that the consumer of a payday loan is, almost by definition, in a desperate financial situation and not likely to shop for the best rates or be in a position to make alternative financial plans. These borrowers are vulnerable to the industry’s abusive lending and collection practices. The state could at least establish a maximum rate structure for payday lenders, which would allow for reasonable profit but eliminate abusive practices in the payday loan industry.
