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If you haven't already, you may soon be receiving a pamphlet in the mail from the payday-loan industry touting their product as "an important short-term financial option." What the pamphlets don't say, however, is that payday loans have a history of causing — not alleviating — financial pain for many consumers.

The industry is sending out the pamphlets as it simultaneously is trying to collect signatures to put an initiative — the Payday Loan Reform Act — on the November ballot. The initiative would allow payday-loan operators to remain in the state beyond 2010, when the state law that allows them to operate will expire.

We hope people read the pamphlets with a healthy dose of skepticism because the claims made are dubious or exaggerated.

One pamphlet shows a woman from Phoenix next to the quote: "If I'm short on cash and need the extra help, I use a payday loan because it's cheaper than bouncing a check."

That's partially true.

Payday lenders in Arizona can charge $17.65 for every $100 loaned. So for a small loan it might in fact be cheaper to take out a payday loan.

However, for a payday loan of $500 (the maximum allowed by state law), the lender's fee of $85.25 is more than one would likely pay for bouncing a check. Banks charge anywhere from $20 to $30 for a bad check and merchants can also seek $20 to $30 in restitution if they receive a bogus check.

Furthermore, the quote on the pamphlet makes it sound as if bouncing a check is the only option available to people who need money quickly. It is not.

The Federal Trade Commission recommends that instead of taking out a payday loan, consumers investigate taking out a loan from a credit union or a small-loan company, getting a payroll advance from an employer, borrowing from family or friends or taking out a cash advance on a credit card.

If you absolutely must take out a payday loan, the commission warns that you should never borrow more than you are certain you'll be able to pay on your next payday without leaving yourself short of funds for the following weeks.

The payday-loan pamphlets also state, "The Pay Loan Reform Act is a citizen's initiative."

The truth is that the applicant listed on the initiative on the Arizona secretary of state's Web site is Lisa Urias, a Phoenix marketing executive who works with the payday-loan industry.

The initiative is by no means a grass-roots movement led by regular consumers who want to protect a source of money.

The pamphlets also say that ridding the state of payday lenders "would impact families by eliminating over 2,500 Arizona jobs with benefits."

Following the industry's logic, it makes sense to offer predatory loans because it employs a couple of thousand people.

What the pamphlets fail to mention is that payday loans cost Arizona consumers $139 million in 2005, according to a November 2006 report by the Washington, D.C.-based Center for Responsible Lending.

We believe the money Arizonans lost through excessive fees would have benefited the state more had it been spent on clothing, food and household items instead of going to payday lenders.

A rival initiative called Stop Payday Loans, which we supported, seems to have run out of steam. Therefore, it's more important than ever for consumers to learn the truth about payday lending and stymie efforts by the industry to perpetuate their presence in Arizona.

A February study by researchers at Vanderbilt University Law School and University of Oxford found a strong connection between approvals for payday loans and bankrupcty filings.

It's the latest evidence that payday loans are bad news for consumers.

If you or someone you know in Southern Arizonans is in financial trouble, before taking out a payday loan or bouncing a check, call the The Don't Borrow Trouble hot line at 792-3087. The staff can offer advice and steer members of our community to agencies that can help them get their financial houses in order.