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. This shading of the truth should not be tolerated by someone like Dr. Bennett. In addition, the letter asserts that the collection tactics of payday lenders also run afoul of principles espoused in The Book of Virtues.
Some lenders threaten customers with criminal prosecution for writing bad checks.
They do so even though most states allowing payday loans do not permit criminal prosecution since everyone knows at the outset that the check is not good. Recently, the State's Attorney for Cook County, Illinois and the Illinois Department of Financial Institutions sued a payday lender for illegally threatening consumers with warrants for their arrest and sending out fake warning letters appearing as if they were written by the Illinois Attorney General.