When you’re trying to help people, it’s vitally important to set the tone for your message very early. Many people won’t read past the title of an article. Others will read only the first couple of sentences. In most cases, only a small fraction of readers will make it to the end. The failing of FCAC’s payday loan page is the tone it sets in its short introductory section.
Some would want FCAC to use strong language to warn Canadians away from payday loans. However, the Government of Canada has to be careful about sticking to facts. They can’t publish a diatribe against a legal industry.
Below is my suggestion for a few small edits to the beginning of the page to change the tone and hint at some good material that appears lower on the page.
“A payday loan is a short-term loan [with a high fee and interest rate]. You can borrow up to $1,500. You must pay the loan back from your next paycheque [or face more fees, interest, and possibly collections, lawsuits, property seizure, and wage garnishment].”
I’m tempted to add “Almost all personal finance experts advise against taking out payday loans” as long as there is some data to back up such a claim.
It can be tricky to set the proper tone while sticking to facts with solid backing. I think FCAC has done this for the small minority of readers who will read their whole page. They need to get the tone right for readers who will only read the first few lines.
As long as it continues to be within the legal bounds of the laws, they need to be "talked about", but I agree there needs to be a statement about the perils of using the service.
ReplyDeleteMy suspicion would be the roots of the article was to be a cautionary statement, but either lawyers, managers or other government oversight watered the message down for fear of litigation.
@Alan: I think initial impressions can be so powerful that the first few lines of the web page set readers' opinions. Even though the page later offers some good warnings about the dangers of payday loans, the first few lines made it seem as though such loans were being portrayed as benign.
DeleteIt's possible that someone fought to water down the short introduction, but any supporter of the payday loan industry wouldn't like the later material at all.
You know I used to feel sorry for people who get caught up in this money cycle. But when most people would rather just watch Dancing with the stars or an insane reality program and not spend 30 seconds on improving any aspect of their financial lives, I just cant.
ReplyDeleteOnes financial problems seem to always be "someone else's or some fat cat bankers fault". No one is responsible for themselves anymore. For the poor who struggle to make ends meet and this is the only option, yes I agree that is bad, for the rest, you get what you deserve if you can't pay for that non essential "toy" or latest Iphone you purchased you just had to have.
@Paul: I started to write a reply, but I decided this is a complex enough area that it deserves a whole post.
DeleteThey'll always be sharks exploiting ignorance. (Legal or otherwise) Given the apparent lobbying by various groups people can't solely rely on government to protect them. You can observe the same sort of nonsensical behavior with nutrition too.(Your more likely to have a cardiologist recommend medication/surgery vs. reversing heart disease with diet change) In the end, knowledge is the only way to empower and protect yourself from potential train wrecks in your future.
ReplyDeletehttp://www.marketwatch.com/story/low-income-families-spend-40-of-their-money-on-luxuries-2017-06-28
@Luciano: I'd be interested to know whether organized crime would be likely to step into the void if payday loans were made illegal. If so, then we're better off regulating payday loan companies than outright banning them.
DeleteMichael, I like your line of thinking! (Currently trying to digest a Freakonomic book and a Nassim Nicholas Taleb book at the same time).
ReplyDeleteAt the same time, I can't help but wonder if a broken leg might be less painful than these crazy cumulative debts! ��