Payday loans help millions

In regard to the Nov. 15 story "Economist at foreclosure seminar in Cape predicts tough 2010":

Payday advances play a necessary role, providing hard-working people with a reasonable, well-regulated option for meeting unexpected or unbudgeted expenses and other short-term financial needs.

Payday advances are small, unsecured, short-term loans, usually due on the borrower's next payday. The average loan is $300, and the typical fee is $15 to $17 per $100 borrowed.

Payday advance customers are educated, hard-working, middle-class Americans who face unbudgeted or unexpected expenses between paychecks and want and need access to short-term credit.

Millions of customers across the country have used payday advance responsibly and appreciate having somewhere to turn when they need quick access to credit. Analysts estimate payday advances were used by 19 million households in 2008.

TOMMY MOORE, Executive Vice President, Community Financial Services Association of America, Alexandria, Va.