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Despite Norfolk’s ban and a 2006 federal law that prohibits payday lenders from making high-interest loans to active military personnel, payday lenders have become only more intent on setting up shop in commercialized and middle-class areas, said Michael Zarpas, president of Global Real Estate Investment. This story demonstrates that the customers of payday lenders are middle-class and that payday lenders do not “target” the downtrodden. As a representative of the payday lending industry, I believe it is critical for people to understand that prohibiting payday lending in Virginia would only force consumers to use the other, more costly short-term credit products available, such as overdraft protection, late fees on credit cards and other bill payments and off-shore Internet lending. In Georgia and North Carolina, where payday lending was also banned, that the Federal Reserve Bank in New York found that bounced checks, personal bankruptcies and complaints about debt collectors jumped significantly when consumers no longer had the payday loan option. Find Out More

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