Comments on: Payday Loan Loansharking

By: Genius

Genius — Thu, 20 Nov 2008 11:47:06 +0000

This is your website, free to express whatever opinions you choose.

However, you lose all credibility by putting LOANSHARKING in your title to start it off.

Before you post uneducated opinions and try to pass it off as being intelligent, it would help if you knew what the term meant.

Want to know the difference between me and a loanshark? I won’t come find you and crack your skull if you don’t make good. I’m not the MOB, or affiliated with a crime syndicate. For what I do, you have to be licensed, and we do abide by laws.

Yeah, I’m in the industry also.

The last 2 posts by MK and Sub1ime14 are DEAD on. And if anyone is still confused or don’t grasp the concept of a payday loan, Lynz contributions were excellent.

By: Sub1ime14

Sub1ime14 — Thu, 06 Nov 2008 19:36:15 +0000

Ok. Firstly, take some damn responsibility for your own actions and decisions. I’m tired of schools being blamed for inadequate students and SUVs being blamed for car fatalities.

Parents: raise your children. Teach them finances and ideals. Teach them how to delay gratification in order to make sound decisions. It’s not the school’s or the TV’s responsibility. It’s yours. I realize this takes some self-control and loss of freedom on your part. Perhaps that would be easier to overcome if your parents had spent the time to teach these ideals to you. See the cycle? Break it.

Drivers: learn to drive. If you’re unsafe or have bad reaction time, the solution is not to buy a bigger, more metal-laden vehicle. This only makes things more dangerous for everybody else. LEARN TO DRIVE SAFELY, or pay somebody else to cart you around.

Poor people: you’re at a disadvantage. It may or may not be unfair. The bottom line is that fairness of how you got there doesn’t matter. You need to work harder in order to get back to par. If you never take this difficult step, you’ll never get back there. If you do take it, you’ll suffer temporarily, but you’ll eventually be able to live comfortably. I’m suffering right now. I’m in this category. I’m married to my home all winter long, because I have to be there every 8 hours at a minimum to stuff a few logs into a wood stove. I spent most weekends this summer cutting down trees, hauling truckloads of wood, and splitting logs. Not at the beach. Not in front of the TV. Splitting logs. It’s unpleasant, but it saves me a lot of money in oil costs. I’ve never taken a payday loan. I’ve needed it. But I’ve never taken it.

We need to practice a little bit of good judgment and stop being so selfish and needy when it comes to immediate gratification.

By: MK

MK — Fri, 04 Jan 2008 22:05:00 +0000

abogado,
It sounds like your sister needed the money, she knew what type of loan she was getting into, it is called short term, not an instalment loan! Maybe next time when she needs to borrow and does not want to pay the interst, she should consult a friend. PDL like thousands of Americans agree, help when you have a quick need for cash. Not a repeated cycle like your sister engaged in. She knew what she was getting into. Advise her to borrow from a friend next time.

By: Holly

Holly — Wed, 19 Dec 2007 18:50:56 +0000

I just found out about EPP, I’ve confirmed the companies I’ve borrowed from are all members of the CFSA and per a CFSA employee they do offer this plan. I’m hoping this will end my PDL cycle once and for all.

By: the truth of the truth

the truth of the truth — Mon, 12 Nov 2007 20:52:13 +0000

PDL’s are set up for failure. If you can’t get a credit card, bank loan, etc. These money sucking blood leaches will absolutely drain the rest of what you don’t have.

Anyway SOME not ALL have a product called EPP. With EPP the interest STOPS, and the payments are divided equally (MAY NOT BE WHAT YOU CAN AFFORD) but it STOPS the “cycle”

THEY DON’T ADVERTISE THIS PROGRAM NOR DO THEY REALLY WANT YOU TO SIGN UP FOR IT. IF YOU DO (DON’T) I REPEAT (DON’T) MISS A PAYMENT!!!!!!!!!!

By: Todd

Todd — Wed, 07 Nov 2007 14:27:26 +0000

Let me give you the truth about Payday lending and not some bull crap from an employee of a Payday establishment. My sister whom is employed as a RN and makes decent money went through a divorce and money was scarce. Her car broke down and the kids needed school clothes, so she decided to borrow $800 from the good oldPayday loan company. Well this $800 was to be paid back at $940 within two weeks, so when she didnt have the whole amount, she went to a second Payday lender in order to pay the first. This soon became a vicious cycle involving four payday lenders where she would borrow from A to pay B then borrow from C to pay B etc… This soon became a never ending money trap with no possible end in sight unless she came into a large sum of money to buy her way out. I recently took control of the situation and told her to stop paying all of these companies, we presented cease and desist letters to all of the companies in regards to her bank account, contacting her employer, etc…When I went into the payday lenders offices and presented them the letters and told them that she would not be making payments, all four of them ushered me into thier backroom so that other customers did not get the same ideas. Of course, they used threats and even went so far as to tell me that my sister would be arrested, which I promptly instructed them that debtors prisons had been abolished years ago…I have advised them that she knows that she will have to pay the funds back, but they will be paid back in increments that she can afford and not at .600% interests. I have also instructed them that I am spearheading a group that is modeling the action that the state of Georgia took to drive these devils out of the state. The tactic that they used was to limit the cap on interest of a payday lender to .36% which the payday lender feels they cannot make a profit at this rate. Personally, I would love to run a business where I couldget that type of interest, but the payday lenders are more interested in raping hard working people. I recently challenged Daryl Devers a spokesman in Ohio for the Payday Lending industry , but he hung up on me and refused to reply to questions that were asked about the industry in Georgia.

By: abogado

abogado — Sun, 12 Aug 2007 19:17:39 +0000

@Unknown, thanks very much, I have talked to plenty of payday loan customers. I’m not exactly opening my wallet to them, but after payday loan customers have been raped for months on end with the “impossible” scenario of rollover triple digit plus interest (see Lynz above) that occurs everyday, I do keep my attorney’s fees for filing bankruptcies for the payday loan customers very low indeed.

@Jules, the APR is the great equalizer. The APR is the common denominator of lending - it is the only way to tell how much financing really costs a borrower in comparable terms. It’s kind of like pricing a gallon of gas in “gallons” as compared to pricing it in lower quantities like ounces or quarts. Rates, or “fees” as Lynz refers to them, vary from lender to lender and so does the terminology the lender chooses to use to describe the transaction.

An annualized comparison of the rate makes it easier for a consumer to calculate the relative cost of the loan.

By: Unknown

Unknown — Fri, 10 Aug 2007 13:40:25 +0000

The person writing this article has obviously never been to payday loan store nor talked to a payday loan customer. Payday loan customers span the financial chart. They are most certainly not “poor” people but middle America who lives pay check to pay check. The average payday loan customers has an annual income of $25,000-$50,000. However, this is just an average with many customers making well above this range.

In the United States short-term credit is a way of life which is here to stay. If you cut people off from this form of credit where will they turn? Maybe the author of this article would like to open up his wallet and start lending money to persons in need without any security attached!

By: Jules

Jules — Thu, 09 Aug 2007 18:12:13 +0000

The thing I’ve never understood is why Annual Percentage Rates are even part of the discussion on a loan that is 2 weeks? Can anyone shed some light on that, it seems absurd and makes the entire debate impossible to follow as a voter.

By: abogado

abogado — Wed, 08 Aug 2007 20:54:35 +0000

@jaymore, paying attention to the facts and figures Lynz (disclosed payday loan industry insider) has provided means a payday loan carries at minimum an equivalent 391% APR and on average an equivalent 416% APR.

Is that what you hope people understand?