I heard from a bunch of folks, though, after that article — and many made good points in favor of the industry. While low scores sometimes happen to responsible people who are suddenly faced with major medical expenses or a lost job or a deadbeat co-signer, they’re also often carried by people who charged more than they could afford and didn’t pay their bills on time. Microcredit is the concept behind some remarkable charitable organizations (and businesses) that lend tiny amounts (often $100 or $200) to the world’s poor at interest rates that are often higher than we in the middle class of the developed world would think are steep. He concurred with several of the points my readers made, noting that major banks have abandoned payday loan customers and that, although payday loan fees are higher, they’re the only solution for some borrowers. The fact that the industry is getting more competitive — after all, there aren’t massive barriers to entry, as all you need is money to loan — is one good sign for borrowers. Read More