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One of my early blogs addressed the value of consumer finance in the day-to-day lives of Americans. I wrote about the unique place that finance companies have in the loan world and how consumer finance companies make personal loans for everyday wants and needs.  See this blog.  

The times we have been going through have reinforced my view as to the value of consumer finance, for several reasons.

First, there is the obvious:  The ability of many Americans to purchase goods and services depends upon their ability to finance the transactions.  It is exceedingly difficult for most purchasers to come up with more than a down payment for an auto, furniture, or major appliance purchase. Even a home improvement trip to Lowe’s, Home Depot, or your local hardware store can require a financing plan. Consumer finance companies provide financing on a fair basis, with reasonable repayment terms. Traditional installment loans are transparent, making them the safest loan product for consumers.

Second, consumer finance companies provide jobs and dollars in their local economies. There are 3385 non-bank and non-credit union licensed lenders in Alabama.  Just the Mini-Code and Small Loan Act licensees alone employ approximately 19,600 Alabamians, with a payroll projected of approximately $588 million. This money circulates in our local economy.

And, third, from a macro view, consumer spending is the fuel that drives the entire American economy.  When we don’t spend, our economic health takes a serious downward turn—as is evidenced by the current state of the economy.  

I am confident that when and as our economy opens to do business again, consumer finance companies and installment sellers will take the lead in providing the resources that so many will need to get their lives back on track.