NATCHEZ — Whether its an order of fries or an advance on your next paycheck, Natchez has you covered.

The city has nearly as many payday loan providers — approximately 10 — as it does drive-thru fast food restaurants.

But that may not mean what you think, according to Mississippi Department of Banking and Consumer Finance commissioner John Allison.

“In a depressed area, there are no more (payday lenders) than in an area that is economically viable,” he said.

Allison said there is no particular concentration of payday lenders in any part of Mississippi, and there are probably 950 to 1,000 of them statewide.

And those who patron the lenders aren’t simply the economically depressed, said Jesse Whitehead, the owner of one of Vidalia’s three payday loan providers.

“You would be surprised at the people who come in,” said Whitehead, owner of Cash in a Dash.

Whitehead and other small loan business owners said public perception is that only people on the lower end of the socioeconomic scale patron the businesses.

“It’s more of a middle or working class type people using our services,” said Dan Robinson of Pearl, president of the Mississippi Check Cashers Association and owner of the Mississippi-based Cash Inc. chain.

Robinson started opening Cash Inc. offices in Mississippi in the early 1990s.

“People needed smaller (loan) amounts, not bigger amounts,” Robinson said.

Robinson said his industry has been regulated by the Center for Responsible Lending in Washington, D.C., since 1998.

“We have fewer complaints than any other regulated industry,” he said. “Out of 1.5 to 1.7 million transactions, there have been only seven formal complaints.”

Robinson said that is because the loan is straightforward.

“You have a short amount of time to pay it back, and the fee is high, but not as high as the alternatives.”

Whitehead said an overdrawn checking account could easily wind up costing more than a payday loan ever could. He also pointed out that bounced checks are often for small amounts.

“Banks charge a $25 to $35 non-sufficient funds fee for each check,” he said. “And the business where you wrote the check will charge you. But if you come in here needing $200 until payday, payback is about $45, and keeps you from bouncing three checks. But nobody sees it that way.”

Robinson added that compared to non-sufficient funds charges, credit card late fees and utility re-connection fees, taking out a payday loan can be significantly less expensive.

“This is the biggest reason people use our services — because of the cost of overdraft,” Robinson said.

Allison said the rates for payday loans seem steep because of the risk lenders take.

“To them, it’s an unsecured type loan,” Allison said. “It’s a lot of risk, that’s why it’s a high rate. But it’s a legal transaction in the State of Mississippi. You can look at it like this — they perform a service that other lenders choose not to.”

Whitehead said customers usually cite everyday expenses for reasons they need a quick loan. He said on Thursday he was able to help a customer avoid a big expense with a small loan.

“She had financed some carpet in her house a year ago for 12 months, no interest,” Whitehead said. “It came down to the last couple hundred she owed, and if she didn’t pay it on time, they would charge a $700 interest rate. So she borrowed $300 to finish paying the note, and it only cost her $50 instead of $700.”

Allison said his department regulates payday lenders and, for the most part, payday loans are fine in a pinch. Most transactions are for 14 or 30 days depending on the customer’s payroll schedule, he said.

“If the individual needs a quick boost, they should realize it’s a short term fix and not a long term solution,” Allison said. “Be cognizant of what you’re getting into.”

Angela Patterson, who operates Cash Inc. in Natchez said everyone is suffering through the current economic situation. She said her customers are also dealing with emergencies and need a small amount of cash quickly.

“A lot of people can’t walk into a bank and borrow for a light bill,” Patterson said. “Children get sick, emergencies come up at home or taxes are due. It’s a much-needed thing and helps people make it from payday to payday.”

Patterson said she suggests that customers pay off the loan and step down fee payments in $25 increments if they are having a hard time.

“If they need help or a little extended time, we try to work with the customer,” Patterson said. “If they don’t pay, I don’t run down to court. We give them every opportunity to make payments.”

Whitehead said customers “get trapped” in payday loan cycles when they patron more than one lender.

“Some people will go to every payday loan store and get themselves in a bind,” Whitehead said. “Because they have a loan at five different places, that’s five different loans that need to be paid in two weeks every month. That happens.”

Patterson agreed.

“It should be used properly, only in a time of need,” she said. “Don’t hang on to it and not pay it back.”

Still, local bankers point to the fact that the American Bankers Association offers alternatives to payday loans — the first being to establish a $500 emergency fund.

For emergencies, the ABA suggests asking an employer for a paycheck advance, obtaining a line of credit from an FDIC approved lender, asking creditors for more time to pay and using a cash advance on a credit card.

Whitehead said he has heard talk of the government shutting down the payday loan industry entirely, but that, he said would be disastrous.

“The payday loan industry is absolutely huge,” Whitehead said. “Start with the jobs lost first, not to mention the tax money that the government would be out. Everything made by a payday loan store is taxed, so on a grand scale, we’re talking billions in tax money lost also.”

Whitehead warned that a shutdown of the industry would also bolster Internet lending operations overseas, which are not regulated by U.S. laws.