Payday loan companies have been accused of preying on those who can least afford the interest on these loans. In some ways this is true as those with bad credit tend to earn less money than those with good credit. However, if banks won’t lend to those whose credit history is poor then there is little alternative available for those in need of emergency cash. Having said this there is no excuse for the aggressive advertising campaigns used for payday loan promotion which encourage people to borrow larger sums than necessary and promote the way in which loans can be rolled over each month.
Despite all of the bad publicity surrounding payday loans it looks like they are here to stay for the time being. If banks will not lend to a large portion of society then it is inevitable for people to seek loans elsewhere. Although regulation in the payday loans industry is considered by many to be too relaxed, without payday loans it seems likely that people in desperation would be driven into the arms of totally unregulated loan sharks