Comments on: Is the payday loan business on the ropes? Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 By: SandyUSA Wed, 22 Oct 2014 09:47:53 +0000 Payday loan is not a scam at all. It’s a means of getting emergency cash loans when needed. Traditional loans can not be availed anytime. That’s why payday loans are becoming popular day by day.

By: Michael-Smith Tue, 11 Jun 2013 20:57:03 +0000 Not that I am an authority on the subject, but I believe that there IS indeed a need for such loans within our financial infrastructure. Granted, there are perpetrators in that industry that commit heinous acts like the frauds noted in the article above, but as I have read here many people responsibly make use of the services of honest payday lenders like Amscot and Advance America, to name just a few, every single day.

Yes, I do in fact believe that the criminals within the payday loan industry should be punished without prejudice, but to say that the entire industry was built for the sole purpose of essentially preying on individuals on the edge of insolvency is grossly erroneous.

By: MerchantMaster Tue, 11 Jun 2013 01:47:25 +0000 Payday loans in my opinion are another scheme for the richer to get richer and the poorer to get poorer. The poor need money so the rich will lend it to them on the basis that it is paid back with a huge interest rate. By the time the poor person gets their paycheck, they already owe it all to the rich person. This is completely different with respect to business cash advances. See -advance.php

By: cjanssen83 Tue, 08 Jan 2013 18:13:23 +0000 The media and payday loan opponents love to throw out interest rate numbers to shock the average person. “391% interest! That’s criminal! Predatory! Loan sharking!”

The reality is that 391% rate averages out to about $15 interest on a $100 payday loan. Now let us have some perspective…an overdraft fee from your bank is typically $34. A reconnection fee for utilities may be $50. A late-payment fee on a credit card is typically $25. The payday loan fee is actually the cheapest and most reasonable fee out of all of them.

Payday loans have their purpose. They exist so that people who cannot otherwise obtain a favorable loan through a traditional bank can cover unexpected expenses. They are not “unfair” or “predatory” in any sense.

By: royg6852 Tue, 02 Oct 2012 15:11:14 +0000 I really hope not! saved our butt twice this year already.

By: LisaMcGreevy Tue, 25 Sep 2012 21:11:24 +0000 Lenders are not looking to “escape federal regulation.” In fact, we are one of the few industries asking for it.

The bipartisan Consumer Credit Access, Innovation and Modernization Act will establish a federal charter that clearly defines a set of transparent national standards, allowing lenders to provide more credit alternatives with lower costs as well as flexible payback periods and loan amounts.

Nonbanks operating under a federal charter will have to comply with all federal laws and regulations applicable to other bank lenders, including the consumer protection authority of the Consumer Financial Protection Bureau. We are asking every lawmaker to seriously consider this legislation so that millions of Americans will have access to the kinds of innovative financial options that they’re demanding.

Meanwhile, the Online Lenders Alliance will keep working to stop deceitful and fraudulent practices.

Since OLA was established in 2005, we have been working with the FTC and law enforcement agencies to protect our customers. In fact, we helped the FTC bring down an agency that collected phantom short-term loan “debts” that consumers did not owe. And we also hired Freeh Group International Solutions, a global risk management firm, to investigate fraudulent practices reported to OLA.

It isn’t about a perception problem; it’s about doing right by those who use our products.

Lisa McGreevy
President & CEO
Online Lenders Alliance

By: PaperChaser Mon, 24 Sep 2012 19:18:32 +0000 Access to credit for distressed borrowers is considered “microlending” on the one end and “predatory lending” on the other; it’s all a matter of perspective. But a lot of the proposed rules and policies don’t make that distinction. The Center for Responsible Lending certainly considers payday loans to be predatory (unless you’re getting that loan from a credit union:

Regardless, small dollar lending is an emerging market. Whether you’re getting a loan from Muhammad Yunnis or the local payday lender, if you use these opporunities wisely, they can be a means to the end of improving your credit and thus your prospects for a better life. But in the narrow attempts by groups like the CRL to snuff out payday lenders, they are creating regulations and rules that will make all forms of subprime credit unavailable to those that can most benefit from it.

By: Longitude Mon, 24 Sep 2012 16:02:34 +0000 Sadly, what could be an educated and informed voice acknowledging the new realities in the dynamic world of financial services has chosen instead to trot out an old and tired opinion of miscontrued facts.

Consumers who willfully, and inteligently chose to use the time and place convenience of online access to short term credit products 1) do so with ample sources of supply agressively competing for their business; 2) don’t have “trashed credit scores” but are often well above the credit cut-off scores for traditional sources of credit like banks and credit unions; and 3) clearly know that a short term loan is a cheaper alternative to many other options inlcuding bank and retailer NSF fees.

Short term lending is a legitimate service meeting an increasing demand in this country. It is a highly regulated actvity on both the state and federal levels. Well placed and approptiate efforts by those regulatory agencies to ensure compliance may, in fact, be appropriate. What is inappropriate are less than accurate opinions being touted as fact, or individual events or firms being construed as representative of an entire industry.

By: spall78 Mon, 24 Sep 2012 04:49:32 +0000 They aren’t being dragged into these establishments, but force or violence are not per-requisites for crime. All manner of cons and scams are illegal; it’s simply lack of judicial agility that leaves this behavior technically legal in most states.

By: GLsword Sun, 23 Sep 2012 07:27:16 +0000 First lets get something straight. The so called “Victims” are not being forcibly dragged into these “establishments” any more than online porn watching children accidently “stumble upon” pictures of topless women. In virtually every case. these people purposefully make rational (at least in their minds eye), reasonable and honest mistakes. Yes there are exceptions to all rules but lets not go there.

I am a recovering Ronald Reagan born again Christian-Libertarian-Protesting-Ant of the Luther/Gutenburg/WASP bible kind. I hate daGubamint with a passion but love all Men and Women. Remember as a Life Member of the LP Ive sworn off physical and even poltical violence so we are just debating here. Please BE offended but don’t hurt me for telling YOU what I see as the truth.

The key is to quit asking legislator/regulators to prevent self destructive individuals from hurting themselves and demand that Government do its job by actually prosecuting and punishing real Crooks and Criminals in way that hurts them not society or the taxpayers.

Try this. Lets go back to the idea of making it perfectly OK for any citizen to leave behind a $20 Bill, the car and house keys in a plain paper envelope addressed to Federal Bankruptcy Clearing House. After 7 years ALL outstanding debts – yes even those nasty student loans and IRS penalties – are forever gone. Kinda like the old Jewish Bibles tell ALL money lenders to Just Do That!

That, ie loosing their “investments” would and should cause banksters to fail (no FDIC Insurance funded by the little people either.) I hear that the joys of Hobo Tent Camping or Couch Surfing on empty stomachs comes close to what Privatized Federal Drug Prison life is like. So That’s fair too.