RSS FeedsPayday scammers or saviors?
Payday lenders: scammers or saviors? Discuss round two of this week's Dust-Up.
Comments will close after two weeks.
1.
Why doesn’t mr. Leonard provide any statics proving the alleged harm caused by payday lenders. It seems as if just putting 400% in the article is enough to demonize the industry. NSF fees and credit fees can be up to 900% APR—where’s the push for caps on those services if a high APR is the only proof you need that a product is harmful.
2. One thing I've noticed in the debate on payday lending is that opponents of these loans rarely mention "underserved communities" as payday advocates like Mr. Thomberg does. Credit unions may serve these communities, but it is too little too late. By vilifying payday lenders, opponents miss the critical issue: there a vast populations in our communities that have been disenfranchised by the entire banking industry. You can’t criminalize a business for recognizing that, and providing a demand for emergency funds.
3. http://www.checkcity.com Not everyone can qualify for traditional loans, or cover the cost of late and overdraft fees and late fees. For those who can't payday loans are a great option.
4. As a representative of the payday lending industry, I would like to point out that no one is offering any real alternatives to payday loans. As mentioned in the article, banks are living fat off of insufficient funds fees and wouldn't want to cut into their profit margins. To date, almost all of the attempts to create payday loan alternatives have either been charity-based, required government subsidies, unavailable to the general public, unprofitable or unsustainable.
5. I don't see how the dollar is as weak as the media claims it is, because, just this week California boasted a $5 billion windfall surplus, so, therefore, the Federalis should also have gotten $8 billion from this State-right? Then, times 50 States, we are talking about close to half a trillion dollars so far, but then again, maybe Democrats, Billary and Baroque need for the economy to be play down, so they can drum up votes!
6. Many of us find the need to use the payday lenders to stay current. When leases are due, many at the begining of the month, we must choose who has priority. There is no easy way to pay mutiple obligations and gas the car.
7. Mr. Leonard's "Center for Responsible Lending" is owned by the Self-Help Credit Union, which would gain from the banning of payday loans. In fact, his group makes millions on bounced check and "on-sufficient fund "protection" fees. The majority of payday loan customers use the product responsibly, as short-term solutions to unexpected needs and to avoid more-costly fees such as those associated with bounced checks, non-sufficient fund “protection” fees and late bill payments. For the small minority who can't fulfill their loan obligations, payday lenders offer Extended Payment Plans – free of charge. That’s free credit!
8. Perhaps Christopher should do his homework: "It might be easy to accuse the firms of taking advantage of people and earning unfairly high profits, but if profits are so high, why hasn't there been a mad rush by the very competitive banking industry to provide these services in underserved neighborhoods?" Wells Fargo owns one of the largest payday lending firms in the nation. I guess it's profitable enough for them to risk their reputation and integrity (and my business) in order to suck low-income and minority populations into a cycle of debt.
9. 1) Paul misrepresents what has happened to the military since the 36% rate cap. No one serves them now. 2) Payday Companies have been legal for a dozen years. If there was a better way, no discussion. Every says something new is coming so it is easier to legislate Payday Loans away. Then they announce their new product did not make financial sense and we go back to feeding the Banks and Credit Unions their fees. 3) Paul Leonard has one goal in this fight and it colors his commentary. Christopher Thomberg is at least being intellectually honest and trying to discuss what is the best product in a free, capitalistic society.
10. Sabrina - Just because you are not choosing a payday loan for short term credit doesn't mean you should take this option away from everyone. Over 80% of lenders left that state, and consumers are now forced to find other more expensive options for short term credit, including overdraft fees, bounced check fees, late fees, or internet lenders who charge more than the storefront lenders did before they were banned.
Submitted by: praestilyn
2. One thing I've noticed in the debate on payday lending is that opponents of these loans rarely mention "underserved communities" as payday advocates like Mr. Thomberg does. Credit unions may serve these communities, but it is too little too late. By vilifying payday lenders, opponents miss the critical issue: there a vast populations in our communities that have been disenfranchised by the entire banking industry. You can’t criminalize a business for recognizing that, and providing a demand for emergency funds.
Submitted by: nibelheim
3. http://www.checkcity.com Not everyone can qualify for traditional loans, or cover the cost of late and overdraft fees and late fees. For those who can't payday loans are a great option.
Submitted by: Krystal
4. As a representative of the payday lending industry, I would like to point out that no one is offering any real alternatives to payday loans. As mentioned in the article, banks are living fat off of insufficient funds fees and wouldn't want to cut into their profit margins. To date, almost all of the attempts to create payday loan alternatives have either been charity-based, required government subsidies, unavailable to the general public, unprofitable or unsustainable.
Submitted by: paydaylendingrep
5. I don't see how the dollar is as weak as the media claims it is, because, just this week California boasted a $5 billion windfall surplus, so, therefore, the Federalis should also have gotten $8 billion from this State-right? Then, times 50 States, we are talking about close to half a trillion dollars so far, but then again, maybe Democrats, Billary and Baroque need for the economy to be play down, so they can drum up votes!
Submitted by: Albert Franklin
6. Many of us find the need to use the payday lenders to stay current. When leases are due, many at the begining of the month, we must choose who has priority. There is no easy way to pay mutiple obligations and gas the car.
Submitted by: Rod Ali
7. Mr. Leonard's "Center for Responsible Lending" is owned by the Self-Help Credit Union, which would gain from the banning of payday loans. In fact, his group makes millions on bounced check and "on-sufficient fund "protection" fees. The majority of payday loan customers use the product responsibly, as short-term solutions to unexpected needs and to avoid more-costly fees such as those associated with bounced checks, non-sufficient fund “protection” fees and late bill payments. For the small minority who can't fulfill their loan obligations, payday lenders offer Extended Payment Plans – free of charge. That’s free credit!
Submitted by: Need Cash Sometimes
8. Perhaps Christopher should do his homework: "It might be easy to accuse the firms of taking advantage of people and earning unfairly high profits, but if profits are so high, why hasn't there been a mad rush by the very competitive banking industry to provide these services in underserved neighborhoods?" Wells Fargo owns one of the largest payday lending firms in the nation. I guess it's profitable enough for them to risk their reputation and integrity (and my business) in order to suck low-income and minority populations into a cycle of debt.
Submitted by: Jessica
9. 1) Paul misrepresents what has happened to the military since the 36% rate cap. No one serves them now. 2) Payday Companies have been legal for a dozen years. If there was a better way, no discussion. Every says something new is coming so it is easier to legislate Payday Loans away. Then they announce their new product did not make financial sense and we go back to feeding the Banks and Credit Unions their fees. 3) Paul Leonard has one goal in this fight and it colors his commentary. Christopher Thomberg is at least being intellectually honest and trying to discuss what is the best product in a free, capitalistic society.
Submitted by: Dave
10. Sabrina - Just because you are not choosing a payday loan for short term credit doesn't mean you should take this option away from everyone. Over 80% of lenders left that state, and consumers are now forced to find other more expensive options for short term credit, including overdraft fees, bounced check fees, late fees, or internet lenders who charge more than the storefront lenders did before they were banned.
Submitted by: aclark
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