There are times when bounced checks or the penalties for arrears exceed the cost of a payday loan. To end payday lending -- even if it is predatory -- might leave people worse off. What is needed is a better loan, and to get that, we need a better market that re-balances the interests of the lenders and the borrower.
A list of the terms our society uses to describe payday lenders almost tells you everything you need to know. It reads a bit like a description of a B-grade horror film: predators, thieves, vampires, slave-drivers, or (my favourite) rapacious usurers. But if they're so awful, why are they everywhere? Why is it that, despite a seemingly universal hatred for them, they have popped up like mushrooms in cities across Canada?