The agent in charge of Bennett's speaking engagements responded to the letter, saying Dr. Bennett will keep his engagement. Consumers Union, the Consumer Federation of America, U.S. Public Interest Research Group, National Community Reinvestment Coalition, Woodstock Institute and California Reinvestment Committee have all urged stronger consumer protections against payday lending. Payday loans represent the worst kind of usury and exploitation of desperate consumers. Dr. Bennett should choose his engagements more carefully to avoid being associated with dubious business practices that harm low-income Americans.
Payday loans are small, short-term loans made by check cashers at extremely high interest rates.
The lender holds the check until the consumer's next payday, usually in two weeks. In fact, loans at these rates violate criminal laws in New York and New Jersey. Because they're borrowing from their next paycheck, many consumers can't make ends meet the next time around. People fall onto a perpetual debt treadmill that can ruin their lives. Payday loan industry practices appear to violate the standards set by Bennett's The Book of Virtues in several other ways, in addition to the high interest rates charged.