So I guess that puts the lie to your theory then and confirms my contention that you cannot operate a viable business loaning money to credit challenged people at the same interest rates as regular banks. If it could be done, others would have stepped forward to fill the void and “payday loan” outlets would not exist.
It does no such thing. I don’t prey on people like YOU do!
A few months ago, I had a very bad month. In just ONE day, the postman comes by and leaves my mail. I see an envelope from my bank...and I know what’s in it. Opening it up I find about $1400 worth of bad checks. (It should not be a surprise that on my last check-up, my Nurse Practitioner put me on Losartan HBP meds. Can’t work 20+ years in this business without it having some sort of mental or physical effect on you.) 2014 was one of my worst years. About 80% of all the new business I opened that year went bad with in a short time. I started turning away most new business and I was ready to throw in the towel back then, but I stayed with it. If anyone here is willing to make good on all my bad debt I will lower my fees.
I will add, some of the people I do business with have GOOD credit. They find it much easier to come in and in less than 2 minutes get a loan for a week or so and pay it back than go to the trouble to go to a bank. One lady came in a few years ago after she withdrew money out of her IRA retirement account and the gov’t penalized her for early withdrawing the money out (I believe she was 53 years old at the time) then she had to pay taxes on top of the penalty on HER OWN MONEY. She found out is was cheaper to borrow from me than to pay the gov’t penalties/taxes to get access to HER OWN MONEY.
I find it highly ironic Dems want to accuse payday loans of being debt traps, but the Dems have me in a debt trap forcing me to pay for those high premiums on Obamacare or penalize me, I am in a debt trap paying personal income tax every quarter or put me in jail, I am in a debt trap paying property taxes or they take my property away, I am in a debt trap to buy driver’s license, license plates, stickers and liability insurance for my car or I cannot drive.