Legislation is needed to cover payday lenders

Green Bay Press-Gazette | 07/27/2005 | Green Bay Press-Gazette Editorial

[Extremely Extreme Extremist]

http://www.greenbaypressgazette.com/news/archive/opinion_21956841.shtml

[Prime Choice]

Caveat Emptor.

Caveat Borrower.

[camle]

learning to live within one's means is far more important then bailing out those who cannot, or punishing those who enable the trend.

[Extremely Extreme Extremist]

The thing is, these payday lenders are serving a niche market. Lots of working poor people can't get a loan through a bank or don't even have a checking account. Again, liberals think that poor people are dumb and need government to guide them. So when these payday loan companies are forced out of business by strict regulation, are the elitists going to loan someone a few hundred dollars?

[E. Pluribus Unum]

If you don't have the money to buy something, don't buy it.

Going into debt (except for houses, emergency medical expenses and, when absolutely necessary, used cars) is stealing from your future self.

[L98Fiero]

Borrowing from Peter to pay Paul is never a good idea, especially when Peter charges crazy intrest and Paul charges none.

[FearNoMan]

Correct. But taking advantage of the less fortunate, less educated and less privileged doesn't make it right or even acceptable just because the law which favors those with money says it's "legal"... and I use that term very loosely.

[downtoliberalism]

When are we going to finally say that we are legislated out?

Are we going to still have a need for Congress in fifty years?

[in hoc signo vinces]

Economic Darwinism


Perhaps...instead of shrilling for libs in schools...teachers should teach some form of consumer economics, which was taught a billion years ago when I was in school, but then...they'd (teachers) have to adhere to some from of accountability.

[stylin19a]

Might as well go to the mob for a street loan...course, maybe the payday loan places are run by the outfit.

[Prime Choice]

Correct. But taking advantage of the less fortunate, less educated and less privileged doesn't make it right or even acceptable just because the law which favors those with money says it's "legal"... and I use that term very loosely.

I have a hard time feeling sorry for the willfully ignorant. It doesn't take a math whiz to appreciate that borrowing to make ends meet is a fool's game.

There is no such thing as a willing victim. If this form of lending is legal, then it is up to the consumer to be informed...it is not the job of government to be their parent.

[wideawake]

I'm conflicted about this issue.

On the one hand, the borrowers are adults and they should live up to their responsibilities.

On the other hand, the lenders are pretty vile and shady characters who are not above deception and dishonesty.

When I was in GA, I was shocked to see how many places lent money in exchange for custody of the borrower's car title.

It reminded me of the biblical injunction against taking the poor man's garment as a pledge.

[Sunshine Sister]

A billion years ago?????????? Thanks for the laugh!

[AxelPaulsenJr]

I love long articles.............

[Extremely Extreme Extremist]

On the other hand, the lenders are pretty vile and shady characters who are not above deception and dishonesty.

LOL - the payday loan people I've encountered are just your typical 9 to 5 suburban people.

[petpeeve]

Sad, but for the working poor, there are no savings for emergencies and what's $20 when you can feed your children. It is unfortunate but a harsh reality and the majority of these borrowers become re-borrowers as they continuously lose that $20 payday after payday. It is less humiliating than standing in the bread line getting handouts though.

[FearNoMan]

Don't confuse my objection to taking advantage of the poor with sympathy for the lazy, entitlement, affirmative action loving deadbeats of ALL kinds that our taxes continue to subsidize on a daily basis. I to have a hard time feeling sorry for those who continually make poor choices and want us to pay for them through our socialist leaning government agencies.

[wideawake]

LOL - the payday loan people I've encountered are just your typical 9 to 5 suburban people.

Plenty of 9-5 suburban people are vile and shady.

Like the Planned Parenthood lady who lives on my block. And the contractor a few blocks away who skimmed hundreds of thousands from private and public jobs. And the town councilman who took a kickback from the mob last fall.

They all look like affable 9-5 suburbanites.

[kingu]

I went into one of these places once, absolutely curious how their business model worked. Average loans per day for the office I visited was 12 - he was seriously thinking of shutting down or doing what other payday loan places do - add phone cards, pre-paid cell phones, Western Union, etc. $240 a day just isn't cutting it for him, especially after he's done paying his fees to the company.

His average customer? Underemployed white female mother who has to deal with a sudden expense. Average length of loan? Most customers only want the loan to go three days or less, but typically the company won't cash a check for ten days. Average loan amount? $220. Most common reason for loan? Auto repair. (Tires are apparently at the top of his list.)

I don't like the fees that these places charge, but without those huge fees, they could hardly afford to keep their doors open. The customers that use these places tend to need money now and usually have already busted through credit cards long before. So it is more than a bit of a catch 22 - the high fees threaten the industry whereas the high fees keep the industry solvent.

I figure it'll be a year or so before some legislative weenie in California figures out that they can offer a subsidy to pay for the loans, thus creating yet another level of government worker.

[Gabz]

the payday loan people I've encountered are just your typical 9 to 5 suburban people.

I have to agree with you on that.

Like with any type of business, there are some shady characters out there, but many of them are actually legit businesses that do serve a purpose. And as with any other business, the legit guys are generally in favor a certain amount of reasonable regulaton, to keep the shady characters out.

And no I do not work for one of them, but have had to use one a time or two.