Posted on 04/14/2009 4:14:35 AM PDT by Scanian
Your post was interesting. Since I didn’t see these payday loan companies growimg up, I figured people got along well enough without them.
I have been in your predicament. I have had to sell my computer. Beg from friends, etc.
When I had the $800 car repair, I typically borrowed a beater until I could get the money. Or in some cases bought another beater. (I am pretty good at spotting usable cars.)
I think I still believe the practice is a net loss, as the situation you describe is pretty narrow (just out of high school).
I do see your point, however. For instance, depending on your situation, you can get a cash advance on a credit card for 0-29.99%. But wait, there’s more! There is a 3% cash advance fee. That 3% becomes an additional 75% if you could actually pay it off in one week. Of course, for a car repair, it would be much less as you’d be within the grace period as you could just use the card for a car repair.
Freedom sucks. Two adults shouldn’t be allowed to freely enter into an agreement, if I don’t think it’s a good idea. Capitalism sucks too.
Nobody is forcing customers to take these loans. Read the article -
“But new research suggests that most payday borrowers are more rational and informed than critics believe. [...] Nearly 90% said they were either very or somewhat satisfied with the transaction.”
The liberal elitist mindset loves stupid ideas like this one.
“Prostitution is overlooked, winked at and is sometimes legal.”
I really think they just haven’t figured out a good way to keep track of it in order to tax it yet.
How so?
The terms and conditions are clearly outlined to the borrower. You have to have a good job (no temp or day jobs) with some history, a utility bill, some history at a residence (again, no homeless shelters or PO Boxes) and even then, depending on your income, you can only borrow a small amount to begin with. Also payday lenders do cross-checking to determine if you got existing loans at other payday lenders.
All this legislation will do is:
(1) Inconvenience people who need cash for emergencies knowing they get paid within the next week
(2) Hurt low-income workers who can't qualify for a standard bank loan
(3) More federal government intervention into the financial sector (funny, I thought FReepers were opposed to this)
(4) Boot more people out of work
Furthermore, payday loan stores are already regulated by state governments.
Most payday lenders prohibit active-duty military personnel from borrowing.
You would too if the majority of your borrowers were low-income, inner-city folks who need money.
Who's forcing them to borrow money? Is this a Daily Kos thread?
TOTUS, is that you? Do you realize that payday lenders employ the very people that need help?
Some claim this country is a Christian country, yet wink and nod at the usury of payday loans.
Well, if gov't would kill the poverty programs and cut taxes, people wouldn't need payday lenders.
I'm not sure what that has to do with "Some claim this country is a Christian country, yet wink and nod at the usury of payday loans.", if anything.
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