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Updated: 2:18 PM Jan 15, 2008
New Payday Lending Proposal
Staunton, Va. Critics of the payday lending business are continuing to persuade state legislators to get tough on the industry. Posted: 5:24 PM Jan 14, 2008Reporter: Keith Jones Email Address: kjones@whsv.com |
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5 Comments
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You people just don't get it. Some states have already changed the percentage rate on the payday loans and the payday lenders left the state. I know some of you think that it would be better if the stores were shut down, but statistics show that the stores help. Here is an article that shows this: http://anovstrup.blogspot.com/2008/02/payday-lending.html I am called uneducated and a victim because I use payday loans, but it seems that you morons are the uneducated and you are all victims of the "lawmakers" and Senators because they are feeding you false information. What these people in the government want is to shut the payday stores down because it will help big banks. If payday stores shut down, bounced check fees go up, overdraft fees go up, and big banks get even more rich than before, and guess who benefits from that...that's right, the government, the Senators, and the lawmakers. Leave the stores alone, they provide jobs and a service that I and many others use.
This whole argument about 400% interest is bull chips in a bag. Paid on time, the true interest rate of the average payday loan falls around 15%, which is actually lower than the rates charged by institutional lenders over the long-term. Payday loans have the high rates because by law rates are to be reported in annual calculations. This is obviously unfair to short-term lenders, who can have their numbers twisted to provide easy political points. This is pure exploitation.
Bruce Elder is a hypocritical pol of the worst kind. Getting behind an issue for political gain, mistakenly thinking putting payday lenders out of business would get him elected to state government. He's just jumping on a bandwagon issue for free press to promote his campaign.
What credit unions and churches are now offering low-interest unsecured loans to people who have credit problems or no credit? Please publish a list. If I need an emergency loan today can I go to one of them like I can walk into a payday advance store?
The truth is that not all payday loans are bad at all. There have been a number of stores and sites that have a positive outreach that you just don't hear about like cashloancity.com. The problem is the press picks up on the stores that charge 2,3, or 4 times the interest as some of these others.