Poll: Payday loans

Photo: Flickr/Taber Andrew Bain

Should payday loans be banned?

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Comments

  • Artful1designer

    I have utilized pay day loans with eyes wide open, they have actually been what I needed at the time to keep the bank from charging me even more in the long run or to cover an emergency. When you need a tire you need a tire. Yes they do charge way to much.The whole system is predatory on the working poor. I have found numerous mistakes on my paychecks throughout the years, walked in and made them correct it.

  • http://twitter.com/LiTerAteCriCket Monica Rice

    Payday loans are just a fancy name for loan sharking, another cog in the wheel whose aim is to  keep the 99% impoverished. I feel that most people are not turning to payday loans to fund lavish vacations like most commercials would have you believe but rather those that use payday loans as an alternative use these loans to help cover the cost of prescriptions that are not covered by insurance (if the borrowers is indeed insured at all), as a means to stay evictions, or perhaps just simply to put groceries on the table..at least for that week. 

  • http://www.facebook.com/people/Carlos-Negron/100000865555605 Carlos Negron

    Instead of banning payday loans, look into the predatory practice of credit card  companies charging the exorbitant interest they do, for NON occuring cash advances.

    The the charge may seem miniscule on an individual statement , it is not so and in effect result in BIG bucks being made by the banks when one considers how often this is done.

  • http://www.facebook.com/people/Carlos-Negron/100000865555605 Carlos Negron

    Instead of banning payday loans, look into the predatory practice of credit card  companies charging the exorbitant interest they do, for NON occuring cash advances.

    The the charge may seem miniscule on an individual statement , it is not so and in effect result in BIG bucks being made by the banks when one considers how often this is done.

  • http://www.facebook.com/people/Carlos-Negron/100000865555605 Carlos Negron

    When considering what one would have to pay in late fees, the payday loan fee does not look to bad.

    let’s be honest, money talks and everything else walks!

  • Mspottzz

    Loans to those on the edge of solvency are a necessary fact of choice. However, the amount of interest being charged, is outrageous. As with credit cards, the interest rate should be limited to a fair amount that serves both sides of the fence.

  • http://moravings.blogspot.com/ Mo Rage

    These businesses and their owners and their interest rates are disgusting and vile.  Actually, as the priest on the show pointed out, they’re immoral. 

    What happened to the idea that usury is illegal?  How did we go from that idea and rule to this?

    I’m from Missouri and a lot of us hope this gets on a ballot and these places get capped at 28 to 36% rates, tops.

    Mo Rage
    the blog

  • Girlhowdy

    Part of the conversation needs to be the ridiculous fees for bounced checks and the games the  banks play. For example, clearing your biggest check first so all the small checks bounce. I don’t do much math, but what’s the percentage when you are charged 35.00 for bouncing a 7.00 check?
    I’ve been bailed out a few times from payday lenders. But I think 400% is ridiculous. Certainly they could be profitable for less.

  • Rpetersen1042

    I lost all of my credit and had to file bankruptcy.

  • Steve

    There interest should be limited to NO MORE than 100% a year–as is they are 300-400% on a yearly rate,they just bust it up so it doesn’t look like 3 or 400%.

  • Rustyparrett

    Payday loans should be legal but unprofitable.  A regular paycheck should provide a better than desperate lifestyle.  Double the minimum wage, provide more financial education and encourage healthy communities to help each other and fight predatory lending.

  • Mra231

    Payday lenders have some of the most ridgid regulations requireing them to explain  to their customers just how much the loan is costing them.  Of course these loans are a bad deal, but how about giving these poor people the dignity to make these decisions for themselves.  These two faced states are going to protect people from the payday lenders, while encouraging the masses to partake in their state lotteries, and taking a cut of the cigarette company profits.

  • Soreneck

    Payday loans are the only tool left in helping out in a pinch, look at all the predatory fees the bank hits you with. Just think, if you vote them away like they did in Montana you’ll have to crawl to the bank on your knees just so that they can take advantage of your wallet… Of course it’s the bank’s pushing for this ( don’t be fooled by there scare tactics ) Payday loans helped me out when i needed it, now the bank just keeps on charging criminal fees AND IT’S ALL LEGAL…

  • Hikey819

    the consumers is responsible for their choices but this people are charging in a very high rate which even makes for the consumer to go deep in debt and make them poorer and poorer which makes the societies  disfunction and less productive in terms of educating their kids which as a nation has a devastating effect in terms of education and competing with other nations

  • http://www.BiblicalPOV.com/ Steve Gilkey

    ALL loans should be illegal. It’s NOT just the interest that’s a problem. It’s also the inflation that loans cause. We ALL suffer because of the inflation, poor and rich.

    And, sometimes, we ALL even suffer from collapses in the economy. For example, the economy would never have collapsed in 2008 if loans were illegal, because “credit (read “loan”) default swaps” wouldn’t even exist. Countries wouldn’t be teetering on the edge of collapse because of “sovereign debt”.

    Consider, too, how many people were made poor by the collapse–and were driven to borrow even more money.

    It is a vicious circle of borrowing to economic devastation to ever more borrowing.
    There really should be a law against it.

    For Christians, read Luke 6:30-31.

  • http://www.BiblicalPOV.com/ Steve Gilkey

     Don’t be too discouraged. It happens to nice people, too. :)

  • Guest

    I think they need to be regulated, and have interest caps…not banned. What ever happened to the sin of Usury?

  • Ricklaham

    Having been in the Payday Loan business, i for one would absolutely positively change them. It was sickening to me to see people come in month after month because they would take one out and never be able to pay it back.
    It is taking advantage of the poor and should be completely outlawed, scraped and started over.
    It is just praying on the poor rather than a good business model. What was really sad was seeing the elderly coming in and getting a payday loan and then everey first of the month they would come in, pay it off, and get another one. It was  a never ending cycle and some would die before they would get the loan paid off. 
    I got out of the business because it does more harm than good to the Consumer, the local economy and Society in general.
    It is legalized loan sharking and loan sharking is illegal for many of the same reasons.

  • Rhoda A

    I want to tell you that there is another section of those who have historically been shut of access to credit. The new legal immigrants, whom you have not covered on the story who are finding difficult to communicate their plight.

    -Rhoda
    San Diego, CA 

  • Stan

    Taking the choice from the consumer is just unbelievable.  Most of the people who take out a payday loan can not get a loan from an normal lender so they really do not have any other choice.   States that have placed low caps on the interest rates of these loans have pretty much seen the industry dry up.

  • http://www.facebook.com/WILLIAMBROCKJR William Brock

    It is disgusting and absolutely un-American to allow these Money Mobsters to prey upon the uneducated, desperate and poor among us, in such a un-regulated way. As with everything today in America and especially in the financial world, REGULATE, REGULATE, AND MORE REGULATION IS NEEDED. Throw these people under the jail.

  • http://www.facebook.com/WILLIAMBROCKJR William Brock

    Good, they need to go away! 4 ever……………..

  • Frspirit

    Even though I voted Yes.. they are Predatory.. At one time I had 3 … $500 loans out.. OMG!
    It was all I could do to get out from under the snafu I created from myself.. I had to juggle everything.. I was constantly trying to figure out which one to pay.. and then NOT borrow again. OH yes.. I was very very tricky.. loans in three different cities!! I got out.. but unfortunately.. my son grew to learn that it was possible and had NO $$ to repay.. Yes.. He’s in jail. One thing leads to another!!! It’s a trap that NO one should be sucked into.

  • Wgunkel

    I, myself, being a victom of PayDay loans, believe that there should be a Cap. on their interest rates.

  • Mlondeaux

     Rick, That is the problem I’m having now. It started because I had cancer and, because my medication was a non-formulary drug, I had to pay $300 a month for my prescription. This went on for three months while waiting to get a special approval. Being on social security disability, I couldn’t afford it, and took out a payday loan. Of course, I couldn’t afford to pay it in full, so I continued renewing it, which put me further behind financially. Things got worse and worse, so I took out another loan. Then I had take out yet another loan to pay for the interest on the other day. Things escalated until now I have 9 loans at different places. Most of my disability check is going towards paying the fees on these loans, and I need about $1,800 to pay them all off. I’m in a living hell right now, and I’m hoping to find someone who’ll give me a consolidation loan so I can pay them off and then have ONE payment to the loan company. At least then, I might be able to see a light at the end of the tunnel.

  • Mlondeaux

     Rpetersen – I have a feeling I’m headed in that direction. I can’t pay off the multiple payday loans I have and the interest rates are killing me. I don’t see a way out of this mess except to claim bankruptcy. My credit is already messed up anyway.

  • Edie

    You should have Elizabeth Warren on to discuss this topic and what can be done about it.
    Good show.

  • Mlondeaux

     Love her! She should be our next president. Won’t back down under pressure and not afraid to stand up to the banks. And a HUGE champion for the middle class.

  • http://www.facebook.com/NuSocrates Rob Bieser

    I use such services. I find that once I get these loans, i tend to be in an endless cycle of borrowing, paying back and borrowing again! I am trying to wean myself off so that I can avoid such expenses. It is difficult to do!

  • ConcernedExemployee

    I worked for Advanced America. Several years ago they started pushing a reloadable debit card. The debit cards have extra fees for use and to load. On top of its already high interest rates it allows the company to take more money from the customer. As employees we were given quotas to fill on pushing the cards. We were told to tell the customers that we were low on cash and our printer was down and the only way we could write or rewrite their loan was if they accepted the card. Sometime management would go so far as to take the printer offline so it couldn’t be used to print paper checks. All new customers were pushed on the card their first loan. People would come in with needed bill money to rewrite their loans. Some customers were allowed to rewrite their loans without their whole loan just the fees. Example they could come in with $30 fee only and rewrite their loans. I began noticing how most of these customers were single parents raising families and other poor and disadvantaged people. I began questioning these practices. When I questioned the practices management blew me off. I eventally quit. Its a scam. It should be illegal. Its a trap! Once you have a loan you’re locked in untilyou get extra money to pay it off. Most customers could do this during income tax time. Generally people would carry the loan for about 6 months to a year with more than one company. Pay day advanced loans were set to be paid every pay day. So if you got paid wkly you could pay $30 a wk (52 wks @$30= $1560.00 for a $300 loan). Others may have paid less due to being paid bi-wkly.or monthly.          

  • ConcernedExeployee

    If you find you’re trapped you should step down the loan each time you rewrite until you are out of it. For example: you have a $300 loan with $30 fees, the next time you go in scrape the money together and rewrite for only $250. The next time you rewrite after that for only $150, and so on. Each time your fee should decrease. Resist the temptation to rewrite for the higher amount each time. If you try hard enough you usually can find an extra $50. Blood bank, cut some grass, etc. You already have to pay the fee. You may have to save up $10 or $20 over time to make up the extra amount. If you can’t step down one pay period don’t sweat it wait until the next period you can. By all means don’t rewrite for the higher amount.    ConcernedExemployee
      

  • Gracebe2you

    Banks are the problem in this country. You can’t get a checking account or debit card without a good credit score. I’ve always thought it was ironic that the poor person who has an overdraft has to pay the ridiculous fee of $35. If you weren’t low on money, the check wouldn’t have bounced in the first place. A big fee is the last thing you need – which can make a bad situation worse, causing a domino effect!

    I think this is where a community bank would be helpful or maybe a credit union. Even a Payday Loan place might serve a purpose with a lower interest rate and financial counseling for borrowers. The owner in the show said  HE couldn’t make it if rates were lowered. I bet if the majority of loan places went under and all the business went to a few decent people, they would make it – without screwing people!

    This doesn’t seem to be a lot different from the micro-loan models being used in developing countries. Heaven knows there’s sections of ours that are third world-like – esp. these days.

  • ConcernedExemployee

    Also a lot of Cash Advance and Pay Day loan companies belong to associations. Some of these associations have within their own bylaws that their members won’t take legal action or report to credit bureas, those who have taken out, I believe, 10 consecutive loans with them and can’t continue to rewrite the loan. Its been years since I have actually worked for one and things change, but I think its worth looking into. Look for their affiliation with any association and research the association’s bylaws which the company have promised to comply with.     

  • ConcernedExemployee

    Also a lot of Cash Advance and Pay Day loan companies belong to associations. Some of these associations have within their own bylaws that their members won’t take legal action or report to credit bureas, those who have taken out, I believe, 10 consecutive loans with them and can’t continue to rewrite the loan. Its been years since I have actually worked for one and things change, but I think its worth looking into. Look for their affiliation with any association and research the association’s bylaws which the company have promised to comply with.     

  • ConcernedExemployee

    These may also be found within the company policies. For leagal reasons the companies have alot of policies which promises to protect their customers. Many customers don’t take the time to fimilarize themselves with these policies, because their trapped in the emotions of not being able to pay their loans back. Knowledge is power.

  • Duane

    That is only because they find more lucrative fishing ponds elsewhere where they can take advantage of people. If the cap was nationwide you would NOT see the industry dry up at all! you would see it flourish because people would keep the loans for longer periods. They just wouldn’t be making the same killing on the disadvantaged as they are now! that is NOT a bad thing!

  • Duane

    That is only because they find more lucrative fishing ponds elsewhere where they can take advantage of people. If the cap was nationwide you would NOT see the industry dry up at all! you would see it flourish because people would keep the loans for longer periods. They just wouldn’t be making the same killing on the disadvantaged as they are now! that is NOT a bad thing!

  • ConcernedExemployee

    After being emplyed by a loan company I’ve returned to cash. In situations where I’ve needed plastic I have a prepaid visa card, you can purchase at most stores. The prepaid cards do have fees but they are listed upfront. Like anything you have to shop around for the ones with the best fit to your use and needs. Their fees vary. I’ve also returned to lay-a-way programs and if I can’t pay cash for it, I can wait until I can..  

  • Rwa7

    As usual. Govt is out of touch,,there needs to be a lending source not dependent on credit scores
    Just income driven!
    Banks charter require this but not enfoursed

  • Hans

    When the man discussed his profit if it was at 36% would be low, well, I can understand the need for the high percentage rate, but it should be set at that if it is going to be long term, say, after 6 months to a year, like any other loan. The person should not be held to such a high percentage for any time over 6 months, at that point, I would agree that is surely predatory.

  • Al Aginn

    People need to be responsible for their own actions. The ‘we’re all vicims’ tone
    of PBS programs is helping cripple yet another generation. Insidious PBS
    programming as usual.

  • http://twitter.com/Cornhole_West Cornhole West

    Without payday loans I would not be sporting these fine threads. Now whatcha wanna go an mess up my styles for?

  • Warren Marvin

    The thing with payday loans are once you get a loan and you don’t has a income where you can pay toward that loan like installment payments you’re hooked.  Especially a person that’s on SSI, these loans are not for you, please stay away from payday loans.

  • jan

    As far as I’m concerned, the payday loan business should made illegal and the companies should be shut down.  They’re vultures. 

    If you have kids you might want to consider making a game out of spotting a payday loan sign or building and yelling “Rip-off” or any other word you think would describe the payday loan business and imprint on their little minds that they don’t ever want to go there for money.  An additional suggestion that if they really need money they need to come talk to you instead.  

  • Donjgen

    I heard one guy say that he would have to go to a loan shark if he couldn’t get a loan.  If there charging anything above 20% there loan sharks.  

  • Smptemonkey

    450% interest rate? 

  • Mr Peterson

    1st off the working and poor class of this sountry have and are being exploited by our financial industry, this is one facet of it. money cost, so when ever you borrow money you always payback more than the original amount. thats with anything: credit cards, home loans, car loans, student loans, cash advances and any other type of loan you can think of. the trick to the payday loan industry is to BE BROKE UNTILL YOU GET YOUR NEXT CHECK. the prblem is no one wants to be broke untill they get paid. they already know that the loan is a rip off, yet they still support the indusry. STOP SUPPORTING THE INDUSTRY BY TAKING OUT THE LOANS AND IF YOU DO JUST KNOW THAT WHEN YOU GET PAID ON YOUR NEXT CHECK IT GOES TO THEM AND YOU THE CHECK AFTER THAT IS YOURS. THE indusrty has the rates it has because they take a huge risk when they lend they cash out. they do not report to the 3 cedit bureau so customer has no real repercussions from defaulting on the loan other than phone calls and they can’t go back to the original store they got the loan from. i understand that things happens and the quickest way to have money in hand is a payday loan but read the agreement and get a full understanding of what your getting yourself into.

  • Simangelene

    If you allow an opportunity for people to access money too easily, who dont make enough money to support the cost of living, inflation, and those who don’t live within their means….people can say that adults make their own desicions, but by all means, their must be another way that will benefit both companies without putting people in debt and can help also make companies money at the same time.

  • Mlondeaux

     Rob – I’m also in that cycle. It’s a living hell, especially since I had to take out more than one loan to pay the fees for the other loans. At this point, I’m broke every single month because of the loans. I would be okay if I didn’t have to pay, and then renew, each month. Right now I’m looking into a consolidation loan. At least I know I’ll be working towards paying it off instead of just renewing each month like with the payday loans.

  • Kellylynnbuck7

    I live in Florida. I used to use payday loans. They serve a purpose when you have emergencies like a car breaking down. But the thing is that you get into a vicious cycle with them. You take out the loan to handle that initial need but then it becomes a loop because you give your next paycheck to pay that first payday loan and you now have no money to get gas or groceries or anything else for the next two weeks. So like me most people borrow the same amount or more again to cover their needs for that two weeks. and then pay it off again and borrow again. It becomes something they have to rely on just to get by. Until they can save up some extra money somehow or sell something to gain enough money to survive for two weeks so they can break the cycle of needing to borrow. I was fortunate enough to be able to figure out a way to break the cycle by economizing even more, selling some things and going without alot of things for a while until I could try to catch up. I’ve never used a payday loan since. I try to figure out other ways solve things that might be as fast acting but work out better in the end. I wish Florida would get rid of payday loans all together, and would gladly sign a petition for Florida if there was one.

  • Whitney

    They certainly don’t need to eliminate payday loans completely. It is still a personal, optional, decision; in that it’s not a requirement to use a payday loan in certain circumstances. But for heaven sakes, there is no need for the interest to be so high when the economic need for these payday loans is not going to vary either way. The cap is a great idea, but they don’t need to make it so low they can no longer sustain business, just SOMETHING lower than 400 freakin percent!

  • Whitney

     actually in reply to ConcernedExemployee- its not that one would come in and rewrite for the same amount on purpose, but it is more of an extension of the due date for the original loan. If you were to just be rewriting it, you would ACTUALLY be paying it off and taking out a new one and could choose a lesser amount; but since you just need to extend the due date of the original amount the only way is to “rewrite” the loan for the original amount again.  

  • guest

    If you borrow 300 and pay back in 2 weeks- You are paying what 45 dollars. That’s only  15 per cent. But people borrow money  and waste it. Then they can not pay it back. You look at the bank overdraft,They are raping you by all the hidden fees. Good example is fifth third bank. They would process all your debits checks but they would-not process your deposits until the next day. So add those fees up.That is why they were nailed in court.  Some of the Banks are far worse than the Payday loans.
     Just PAY loan when its due and don’t run the next day and get another- I watched a lady one day cash $500 check- then spend $100 on Lottery tickets.
     Bottom line is if the Govt doesn’t like these loans then let them HELP these people!

  • Anonymous

    Competition is what makes the world go around.  Legislation is NOT the answer competition is. My bank-US Bank-offers-offers a type of weekly loan that will automatically come out of your next paycheck. The rate is $2.00 for every $20.00 borrowed. They limit getting an advance or loan to 9 weeks straight and then cut you off for several months if you try to go over that. Credit Unions also offer a type of short term loan.  Instead of legislation why don’t state and federal govs. ask lending instituions to come up w/some type of loan products for their customers? And make them available to the general public in some manor.  Your piece didn’t tell us if there were any competitors or other options to these so called high interest loans. Don’t you think that was a disservice to the viewing public?  It sounds like you are for the legislation,wanted to get the word out  and not for REAL  answers. 

  • zedonk

    There is a need or they wouldn’t exist.  But they take advantage of the poorest in our communities that want to do the right thing.  So there is a need to have a cap that allows the businesses to operate successfully or provide another alternative by exisiting lenders in our system.

  • GoodbyKitty

    I have borrowed from payday loan places and been charged $15.00 per each $100.00 borrowed. It’s a lot, but I have no problem with it. They perform a necessary service. They have to pay the people that work there and pay rent, electricity, etc. When I borrowed from them I did so of my own free will.
    Now, banks are another story. They charge $35.00 for “overdrawing” your account. And they manipulate your transactions to make it that way. Then they charge another $20.00 for having a negative balance! I signed something a few months ago saying that the bank should deny any charges that would overdraw my account, but somehow that did NO GOOD!
    Why are they making such a big deal over payday loan places that a small percentage of people use, instead of looking at BANKS that almost everyone uses. To me they are far worse.

  • GoodbyKitty

    I have borrowed from payday loan places and been charged $15.00 per each $100.00 borrowed. It’s a lot, but I have no problem with it. They perform a necessary service. They have to pay the people that work there and pay rent, electricity, etc. When I borrowed from them I did so of my own free will.
    Now, banks are another story. They charge $35.00 for “overdrawing” your account. And they manipulate your transactions to make it that way. Then they charge another $20.00 for having a negative balance! I signed something a few months ago saying that the bank should deny any charges that would overdraw my account, but somehow that did NO GOOD!
    Why are they making such a big deal over payday loan places that a small percentage of people use, instead of looking at BANKS that almost everyone uses. To me they are far worse.

  • Beautifulmind

    Has anyone yet suggested that there should be a “micro-loan” model blended with the payday loan? Here’s how it would work: A local non-profit starts their own payday loan business. Money for start-up is either donated or invested. This is not a bad investment! I was surprised to learn that 94% of these payday loans are fully paid back! With the exorbitant interest! It seems to me the key to that re-pay rate is that they have a zero tolerance policy: if you don’t re-pay the loan, you can never borrow from them again. I think that would be an even greater motivator with loans that have a lower interest rate. Very reasonable interest can be charged on micro-loans that are made from donations, just to cover costs. Even if money is solicited from investors, many people like me who are not comfortable investing their money in traditional corporations would feel great investing in something like this. In other countries, micro-loans are created within communities so that all the money that is made flows back into more loans and people in those communities. In some places, the cycle of poverty is broken for many by helping people start their own businesses via the micro-loan model. Why don’t we use this here?

  • Mitch

    Payday loans are one of the most above board, easy to understand contracts a person can get into.  Regulations to keep it this way should stay in effect. 
    Because we value freedom, we allow people to make all kinds of unwise decisions.  Regulate the industry to make sure the contracts are transparant, but give the poor and uneducated the respect and dignity of making their own decisions.

  • N20300tt

    If credit unions and commercial banks charged middle class customers 400% for a loan like payday lenders, there would be considerable public outrage and perhaps a revolt against credit unions and commercial banks.  Commercial banks and credit unions would likely be forced to lower their interest rates in response to popular indignation.  The public would consider a 444% interest rate fraudulent or at the very least, a fleecing of the public.  Yet, because the working poor cannot easily defend themselves, payday lenders, check cashers, subprime auto lenders, and other Poverty, Inc. enterprises (the institutions mentioned by Gary Rivlin’s article America’s Poverty Tax), get by with their predatory lending practices.  They are taking advantage of a vulnerable population. 
               
    Payday lenders argue (laughably) that they would be forced out of business if they had to lower their interest rates from 400% to something sane like 30%.  And yet, commercial banks and credit unions have survived by offering their customers sane interest rates.  They consistently offer qualified customers auto loans, mortgage loans, signature loans, etc., at an interest rate of 5-8%, and they rarely file bankruptcy.  In most cases, they are doing quite well.  Moreover, if most payday loan customers do repay their loans as the Need To Know report stated, then payday lenders are even more likely to stay in business because the customers who repaid a 400% interest loan will easily be able to repay a loan with 30% interest.  A lower interest rate might even create more demand for payday loans.  Thus, payday lenders are not going to go out of business because their customers do repay their loans.  They would stay in business even if they lowered their interest rates.  But they would like the public to believe exactly the opposite because it suits their own self-interests.  And yet, they claim to be acting in the interests of the public.  If you claim to act in the public’s interest, then provide them loans with affordable interest rates!
     
    So why can’t payday lenders offer the same interest rates as commercial banks?  Because they know they don’t have to.  The higher the interest rate, the higher their profits, which is good for them and bad for the working poor.  (By the way, I think anyone who is working shouldn’t be poor).  Payday lenders know that other banks have already rejected poor customers, that the working poor are desperate for money to pay their bills, and that they will have to accept their insane interest rates.  Payday lenders charge insane interest rates because they know that they can get by with it.  They have even mobilized their unelected lobbyists to block any attempt to lower interest rates.  And yet they claim to be providing a service to the public.  If they were acting in the public’s interest they would allow lower interest rates.  But since they are blocking attempts to lower interest rates for the public, they are merely acting in their own self-interests.     

  • gil

    I owned one of these businesses many years ago(10). What I’d like to point out from the lenders side is that it wasn’t a matter of if the loan would go bad but when. Collection costs are high and the courts do not have a favorable impression of the businesses. I did not like the business. I realize that the effective interest rate was high but they’re high for a reason. Many are extremely bad credit risks and would never be able to enter a main-stream market.

    One additional thing that I would use as a justification was how badly the customers were getting whacked by their banks for returned items. The bank was really in the cat bird seat. For a $30-40. whack they risk nothing. I would see people banking $1500./month and paying 2-$300. in returned chk chgs. Just cruel.

  • Frank Anne

    no , nowadays payday loans is very important because every when in emergency get easy way loans online within hour but expensive do not matter it is expensive is is very important when my life fully worry in finance .