Woman thankful for generosity of others

Letters to the Editor

I would like to thank the unknown person who was so generous to give my daughter a coat.

My daughter said a teacher asked if she had a coat. My daughter said no and that she could not find her sweater.

A teacher then presented my daughter with a box wrapped in brown paper. Inside she found a beautiful new coat that is big enough to fit her all year long.

We are a very religious family and I want to thank the Lord and the person that provided this wonderful coat. I have always taught my daughter that when you can help someone you should, and to never expect anything in return. That’s because one day we might need help and the Lord will send someone.

Beth Davidson
Clovis

Payday spending cap not beneficial

Your Sept. 13 article “Military looking into payday lending system” fails to discuss the inaccuracies of the Pentagon report and the unintended consequences of eliminating one short-term credit option.

Among the recommendations is a rate cap of 36 percent APR (annual percentage rate) on loans to military customers. At a 36 percent APR, the total fee charged on a $100, two-week loan would be $1.38. Payday advance lenders could not cover the cost of originating a loan, let alone meet employee payroll and other fixed business expenses.

Storefront payday lenders would be prohibited from offering payday advances to members of the military. But eliminating payday loans as an option will not eliminate the need for short-term credit. Borrowers will be driven to unregulated offshore Internet lenders or forced to choose between more expensive alternatives such as bounced check or overdraft protection fees, or late bill payment fees.

Certain conclusions in the Pentagon report directly contradict research conducted by the current chair of the FDIC, government agencies, foundations and academicians involved in financial issues and study.

The allegation that payday lenders target members of the military is simply false. In fact, their own report shows that less than 1.3 percent of total industry revenues comes from military customers.

Congress should support legislation that protects service members from all predatory lenders, including loan companies that target only the military, as well as any bad actors in our own industry. Military customers would be protected and reputable lenders allowed to stay in business and service growing demand for this credit option.

Darrin Andersen
President
Community Financial Services Association of America
Alexandria, Va.