Payday loans were created for the purpose of helping people in times of financial need, in the short term, with the promise of being repaid with the next check of payroll in activity. Additionally, payday loan companies like Cash Connection have even helped struggling people who weren't using banks to increase access to their services, with the goal of convincing almost all types of people that they could benefit from a short-term loan. . This was a beneficial and ethical approach because between 1995 and 2003, bank overdraft fees nearly doubled and banks refused to serve individuals seeking payday loans, making payday loan companies the optimal choice for short-term financial services. Nevertheless, the idea of ​​helping people in times of need and financial difficulties at their convenience is an ethical approach with good intentions. In addition to providing credit to thousands of desperate consumers, the payday lending industry has contributed significantly to the U.S. economy in various regions. Through the payday lending industry, more than $10 billion in GDP has been contributed to the economy, supporting 155,000 employed people, while employing more than 75,000 payday lending employees in 24,000 locations. sale. In 2007 alone, the payday lending industry produced approximately $44 billion in credit to U.S. consumers, generating $6.4 billion in labor impacts and an additional $2.6 billion in state taxes, federal and local, or approximately $37,700 produced per store employee. In this massive industry, companies were not considered industry players until they had more than 51 branches, of which only three companies existed. Problems and Inefficiency Although payday loans were considered a blessing for many people in need of money at the last minute and. ..... middle of paper......if you have more established positions that may offer better rates than payday loan companies, it may be beneficial to try to merge into a new industry that is not as competitive or as demanding. Perhaps getting into the long-term lending business might be a better option, as more money will be at stake and the money will actually be loaned for a specific reason rather than just to "avoid late fees". on bills” or “unexpected expenses”, which was the case. the main use of payday loans. In such a competitive industry, companies will do anything in their power to gain an upper hand over their competitors, which usually leads to unethical practices. If the payday lending industry evolved into a longer-term lending industry, with the real intention of helping people overcome major financial obstacles, they would have a more reputable reputation and would surely operate in a more ethical manner..