Hawkins seeks ban on payday lenders

Spartanburg Herald-Journal ^ | Sunday, December 30, 2007 | Robert W. Dalton

[boop]

"Industry critics say the annualized interest rate, nearly 400 percent, is too high a price to pay, and that too many people get trapped in a cycle of borrowing more to pay off previous loans."

So it's the governments job to prevent people from being complete morons? It's been a few years since I was poor, but I don't remember being this stupid. Why don't people open a checking account?

[driftdiver]

“I don’t see that. As long as they have full disclosure and adhere to all regulations, it’s no more of a “scummy” operation than say, a state run lottery.”

At least in a payday loan you get something. With state lottery’s the average person gets nothing except an empty wallet.

[VRWCtaz]

Don’t get me started on the things financial institutions do to maximize fees. I once had a situation involving two separate accounts at the same institution and an EFT (electronic funds transfer) that resulted in two service charges. After several phone calls and a face to face in the branch manager’s office my account was credited back with the fees.

[advertising guy]

so far every post has it wrong based on assumptions and people’s habits............but I ain’t gonna enlighten anyone,I’m gonna watch 2 ball games

typical assumptions by great freepers but w/o the facts

[MarkL]

I do not see that payday loans or credit cards are any different than loan sharks minus the physical intimation. Should we regulate them? Are we our brothers keeper? I see them as predatory and I would mind seeing them out of business. The stores are an eye sore to any community.

But there's a market for them... In a solid, middle class neighborhood of Overland Park, KS (near 75th & Metcalf) there are 4 different payday loan offices within 4 blocks of each other. This is a fairly high-rent area. If there wasn't business for them, they wouldn't be there.

Mark

[KrisKrinkle]

“Industry critics say the annualized interest rate, nearly 400 percent, is too high a price to pay, and that too many people get trapped in a cycle of borrowing more to pay off previous loans.”

Industry critics are free to band together, form their own company, and offer the same service for less — if they can.

[MarkL]

The best thing the military can do is educate the troops on these dirtbags.

Don't worry. The "dirtbags" aren't able to service people in the military any more.

They'll have to go to "loan sharks" for advances, if they can't find any other way.

Mark

[Alberta's Child]

I just saw an ad on TV for auto insurance that said they would accept a postdated check if "things are a little tight" right now. That just seems wrong to me.

Well, maybe. There are some companies -- many banks, for example -- that routinely waive one required monthly payment (though interest charges still accumulate) around Christmas time.

[MarkL]

I don't see that. As long as they have full disclosure and adhere to all regulations, it's no more of a "scummy" operation than say, a state run lottery.

Regarding full disclosure, I've seen the contracts that people sign from 2 payday load companies: In both cases, both the APR and the total amount that must be payed back (which is also the amount for which you write the check) are in HUGE type. There's NO WAY that you could possibly say that "it was in the fine print." That and the fact that you're getting $300 in cash in return for a check that you just wrote for $345!

Anybody who can't understand that has no business living on their own.

Mark

[SC Swamp Fox]

South Carolina Ping

Add me to the list. | Remove me from the list.

[MarkL]

Walk into most any convience store when it’s busy and chances are you’ll wait in line behind obviously poor customers buying scratch-off. It beats me how politicians can fawn over such state-sponsored abuse of the poor while criticising others for joining the party.

I like to call the lottery "The Stupid Tax."

Of course, that doesn't keep me from using it as my retirement plan. I invest $5.00 a week towards my retirement in the Powerball!

Mark

[M-cubed]

Cousin Guido’s “Saving and Loan” business has been cut in half by these brick and mortar establishments that actually pay rent and taxes on their businesses...but then again so have the number of broken arms and fingers at the county hospital...I wonder if there is a correlation between the two?

[ThisLittleLightofMine]

It is wrong to prey on peoples desperation, market or not.

[M-cubed]

Ive seen the exact same thing happen at every Car dealership in the country too!....the percentage of “upside-down car loans” have increased dramatically!!!...and the poor salesman is asked to sell more and more new cars to the gullible public to keep the scam going!...Its time we outlawed Car Dealerships!!!

[M-cubed]

Do u feel the same way about Car Salesmen and dealerships that lead people to go “upside down” on a new car loan?
http://www.bankrate.com/brm/news/auto/20030728a1.asp

[MarkL]

It is wrong to prey on peoples desperation, market or not.

Then I suggest you set up your own place, where people in desperate straights can come to you when they need money, but aren't able to get it from banks, or even credit unions.

Or would you just say to those people, "too bad?"

Mark

[ThisLittleLightofMine]

Heaping onto the desperation is not “helping them”. The whole reason these places exist is because people over extend themselves and it isnt because of food or basic necessities. It is the problem of instant gratification that drives people into debt. It is sinister to earn a buck off through usury interest fees. As far as giving a “hand up” to someone, when they need help with basic necessities, Yes I do help these people not only through taxes but primarily with private donations.

[visualops]

Often the big refund is actually the government payout (EIC etc), not a question of them having too much tax withheld.

[doosee]

The previous governor candidate (Democrat Tommy Moore) resigned from the state senate in SC after he lost the election and took a high paying lobbyist job with the payday lenders. Dem party chairman Erwin’s marketing company has the payday lenders as one of his biggest customers in SC. But remember all, the Dems are for the little working man out there. So says Edwards and the whole bunch of Dem candidates

[timm22]

Heaping onto the desperation is not helping them. The whole reason these places exist is because people over extend themselves and it isnt because of food or basic necessities. It is the problem of instant gratification that drives people into debt. It is sinister to earn a buck off through usury interest fees...

Let's assume for a moment that you are correct in morally condemning this practice. Should the morally suspect nature of this practice be enough to justify the government in preventing an adult from knowingly and voluntarily entering into such a loan?