Archive for Sunday, June 13, 2010

Federal regulation for payday loans gains traction

In the past decade, the number of payday loans has grown, calling for the need to limit what they consider predatory lending practices.

In the past decade, the number of payday loans has grown, calling for the need to limit what they consider predatory lending practices.

June 13, 2010


As a longtime bankruptcy attorney, Jerry Harper said he has seen the devastation that payday loans can do.

Among his clients’ portfolio of debt are these small, short-term loans. His clients heading for bankruptcy have taken out loans of $500 at a time and are carrying up to a half-dozen loans at once.

“From the day (payday loans) started, they have been a problem. Someone with a bunch of payday loans is someone who files for bankruptcy,” said Harper, who has practiced law for almost 35 years and is now semi-retired.

In the past decade, as the number of payday loans has grown, everyone from churches to the military have called for the need to limit what they consider predatory lending practices.

This time, regulations could come from the federal government. Creating a federal agency to regulate payday lenders is among the many reforms under consideration in the financial overhaul bill that Congress was hashing out last week.

Credit, debit card changes

Owners of debt and credit cards may have noticed receiving more fine-print letters in the mailbox over the past few months. Those card notices can largely be attributed to changes stemming from new federal regulations on the credit card industry. Many of those changes will kick in this summer. If you own a card, here’s what you need to know.

Debit Cards

On July 1 for new cards and Aug. 22 for existing cards, banks will decline debit card transactions if there aren’t enough funds available in a checking account. Debit card owners have to opt-in to participate in overdraft protection coverage and agree to the overdraft protection fees.

Credit Cards

A creditor can only raise interest rates after the account has been open for more than a year or if the account has been past due for more than 60 days. The creditor must provide a 45-day written notice before raising rates. As for billing, a creditor must mail a balance notice at least 21 days prior to the due date. And an electronic payment must be processed on the same day it is received.

Gift Cards

Beginning in August, all gift cards will be required to have at least a five-year life span, according to Housing and Credit Counseling Inc. And for at least one year, gift cards can’t have declining values or hidden fees.

What regulations the agency would enforce is still unclear.

The good, the bad, the ugly

When talking about the potential for federal regulations on payday loans, Tom Linafelt, who is the communications director for QC Holdings, utters a familiar line.

“Main Street shouldn’t have to pay for the sins of Wall Street,” he said.

In this case, Main Street is represented by the more than 500 Quick Cash branches the Overland Park-based QC Holdings has throughout the country. One of those Quick Cash branches is in Lawrence.

In the industry’s defense, payday lenders offer credit to underserved markets, Linafelt said. And the loans are cheaper than overdraft fees, bounced checks or late fees on credit cards, he said.

To get a payday loan, consumers usually only need proof of employment and a banking account. They write the lender a postdated check for the amount due and the additional lending fee. They then walk out the door with the cash. The intent is for the borrower to be back after their next payday with the amount they borrowed, plus the fee.

At the very top of the lending agreement in bold black letters, the lenders spell out the finance charge, annual percentage rate and when the loan is due.

“The vast majority of our customers pay loans on time and appreciate having access to short-term credit that otherwise wouldn’t be there,” Linafelt said.

The Center for Responsible Leading paints a far different and more predatory picture. Week after week — sometimes for months — borrowers will pay the interest fee to avoid defaulting on a loan. On average, a borrower pays $800 to borrow $325. A 2003 study found that borrowers with five or more loans a year account for 91 percent of payday lenders’ business.

“They make money on getting a group of people sucked into a treadmill where they are paying a fee over and over again for the same loan,” said Kathleen Day, spokesperson for Center for Responsible Lending.

State regulations

Seventeen states and the District of Columbia have passed anti-predatory lending laws that curb or ban payday lending practices.

In Kansas, some regulations are in place. Lenders can’t tack on fees higher than $15 for every $100 borrowed (an annual percentage rate, or APR, of 391 percent) or loan more than $500 at once. Lenders can’t give borrowers more than two loans at once and no more than three during a 30-day period.

Once the loan matures, if the borrower can’t repay it, payday lenders can’t charge more than 3 percent per month, which is a 36 percent APR, until the loan is repaid.

But borrowers get caught in an expensive payday loan cycle when after the end of the two-week lending period, they can’t repay the loan. Lenders can offer to extend the $100 loan for an additional $15 fees. Over an eight-week period, the borrower would end up paying more in fees than what the original loan is worth.

This expensive lending cycle is known as a rollover. In Kansas, rollovers are against the law. But detecting rollovers is difficult, said Kevin Glendening, administrator for the Kansas Uniform Consumer Credit Code, which is the group of laws regulating all consumer financing and lending.

“Let me just say there are ways to attempt to structure those transactions to evade detection,” he said. “We do come across it occasionally and take action against the lender. But it can be difficult to detect because of the nature of the business and because they are cash transactions.”

During the 2007 legislative session, Wichita-based community groups lobbied to toughen up payday lender laws, asking for a 36 percent APR, which would mean that lenders would have to drop their lending fees from $15 to $1.38 for $100 borrowed on a two-week loan. That law never passed.

Regulation vs. competition

Setting caps on just how much interest can be charged on payday loans might not be in the best interest of the consumer. That’s according to a study by Kansas University professor Robert DeYoung.

DeYoung, the Capitol Federal professor in financial markets and institutions, was out of the country and unable to comment for this story. But his colleague, Ronnie Phillips, a retired economics professor from Colorado State University who partnered with DeYoung on the study, explained the findings.

DeYoung and Phillips pulled records on more than 35,000 payday loans in Colorado from 2001 to 2006. The study found that after Colorado imposed a cap on finance charges, competition among payday lenders diminished and prices drifted upward to the maximum amount lenders could ask for under the state’s law.

“If the state and Congress sets a ceiling on fees, what they are doing is telling everyone to charge the maximum,” Phillips said. “It saves (the payday lenders) the trouble of colluding.”

That isn’t to say Phillips believes payday lenders should operate in a totally free market either.

“On one hand, you need some regulation, you need some oversight. But you also need some ways to promote competition,” Phillips sad

Research shows that consumers are aware of the high interest rates attached to payday loans, and the customers are not at the lowest social economic scale. All of them had a job and checking account, which is required before a payday loan is issued. Most had some education.

“It’s just not the totally uneducated and ignorant people that are using this,” Phillips said. “The average person is a woman in her 20s making over $30,000 a year. That is not the poverty level.”

What would help, Phillips said, is having banks curtail overdraft fees so consumers won’t rush to payday loans to cover expenses when money runs short.

Having a federal agency overseeing the payday lending industry would be good for consumers, said Day of Center for Responsible Lending. The nonprofit research and policy group is lobbying Congress to make sure that agency has jurisdiction over all lenders.

Linafelt of QC Holdings believes the exact opposite will happen, with oversight from a federal agency ultimately hurting consumers.

“States are better suited to control the small-loan industry. They know communities better than the federal government,” he said. “They should focus on the Wall Street practices that caused the economic collapse, not on the $300 consumer loan.”


mr_right_wing 7 years, 11 months ago

I'd say it's pretty much a toss-up between a loan shark or a payday loan! I've only ever heard horror stories, I can actually say I've got at least enough sense to stay away from those places!!

just_another_bozo_on_this_bus 7 years, 11 months ago

"When talking about the potential for federal regulations on payday loans, Tom Linafelt, who is the communications director for QC Holdings, utters a familiar line.

“Main Street shouldn’t have to pay for the sins of Wall Street,” he said."

"Ooh, look at the lion over there," said the big bad wolf.

puddleglum 7 years, 11 months ago

yeah, I love how these people have 7 different $500 loans and can't "get out from under it" like someone forced them to get these loans... unfair? lets see... you have two dollars in your bank account on tuesday afternoon. You deposit your $500 paycheck at 3pm...the teller says that you can't touch your money until problem. The next morning, Wednesday, you write a check or use your debit card at starbucks for a $4.00 coffee. Thursday afternoon, you check your balance and guess what? That's right, the ol' $30 overdraft fee....Neat, huh? This is EXACTLY what capital federal has done to me twice in the last 8 years. Now You go back to the bank and raise hell that you had deposited your check the day before and there should be no "NSF" charges...They hem and haw for a minute or so, then they say "oh I apologize, that's just the way the computer reads your balance-from the day before..." Now is the good part: You actually have to ask them to remove the fee, and they will say "oh, O.K." many people don't even notice these charges, or the sequence of deposits/withdrawals? fact is, many. Now let's just say you didn't deposit your paycheck and you legitimately overdrew your account.... $30 fee on a $4 cup of coffee.... the payday loan 'fee' is 15%, in other words, $15 for a $100 loan. 15% per term for the payday loan fee VS. 90% for the bank fee... which would you choose? The majority of people who get payday loans, are trying to avoid the overdraft fees from banks. But don't take my word for it, ask them yourselves. It is the Banks that are the crooks. Just look at their buildings. You think they paid for those with "interest-free checking accounts"?
no. Banks are trying VERY hard to kill off these payday lenders because the payday loans are destroying the "cookie jar" a.k.a. overdraft fees. if you want to regulate something, regulate or cap the overdraft fees being charged by banks....See how the banking community would like that? one more time: 15% per term for the payday loan fee VS. 90% for the bank fee... Don't even get me started with the credit card (banks again) companies....

Fred Whitehead Jr. 7 years, 11 months ago

Sorry, but I did not get much past the "check for a $4.00 coffee" part.

What fool would write a check for a cup of coffee? What fool would PAY $4.00 for a cup of coffee?

The problem here, it seems, is the value system, not the bank.

mr_right_wing 7 years, 11 months ago

Why not just get about $50 "less cash" from your deposit? I'm careful because Bank of Obama (aka America) charges $35 for an overdraft!

And as stated above...$4 for coffee? What, are you spending close to half that check on coffee per pay period??

puddleglum 7 years, 11 months ago

my, oh my- watch starbucks' counters closely my friends:

it is more than common for people to write checks for less than 10 dollars... and people swipe their debit cards at coffee shops all day long.. don't take my word for it, ask the clerk the next time you visit a coffee shop.

oh, and as for "what fool would pay $4.00 for a cup of coffee?"...... obviously, you don't get out much. Or maybe you live in 1978... cited from reuters: they sell 1.5 billion cups a year

so I guess you are a lot 'smarter' than a whole lot of coffee drinkers....enjoy your life.

mr_right_wing 7 years, 11 months ago

The classic parent line comes to mind....

"...and if everyone were jumping off a cliff, would you do it too?"

monkey_c 7 years, 11 months ago

But, if you were to write a $300 check, you would be charged the same $30. It's really about understanding the "options" Both can bleed you dry.

somedude20 7 years, 11 months ago

when you overdraft that much most times the bank will not honor the check and you are stuck with overdraft fees as well as returned check fees and if the place that you wrote the check to resubmits it and you still do not have enough to cover it, guess what, you get charged again.

puddleglum 7 years, 11 months ago

that's right, unless you are as pretty as I am.

puddleglum 7 years, 11 months ago

This reminds me of the citizens against predatory lenders organization that came to town a few years ago trying to get the crowd all riled up and close down the payday loaners, the car-title loaners and the pawn shops....Boy, everybody was jumping up and down yelling about how racist and opportunistic these evil companies were, preying on the lower class....the leader of the movement spoke of how great it would be to abolish these places. Then someone in the crowd said "hey, then where will we go to get a short-term loan? A bank or credit union won't help us out, where do we go?"
there was no answer. 3/4 of the meeting got up and left the room.

'nuff said.

tomatogrower 7 years, 11 months ago

Maybe you should stop buying $4 coffees until you can save up to have a buffer in your account. It's good to have at least $200 in case of mistakes. If you have more than that you can keep an average balance of $500 and earn a little interest. Just a practical suggestion.

puddleglum 7 years, 11 months ago

yeah, tell the 1.5 billion annual starbucks' customers that...

Your advice is totally sound, and agreed with.

somedude20 7 years, 11 months ago

since you are so pretty can't you just use your looks to get what you want?

puddleglum 7 years, 11 months ago

oh, you know it- somedude...but not everyone is nearly as pretty as myself, so I need to write a few words of wit for them.

Rick Aldrich 7 years, 11 months ago

well I've never dealt with a payday loan business and hope to never have to. however i just went thou what i think is a legal Bank / government scam. my checking account got into the negative before i found out that i forgot to write a check in the register.(MY FAULT) BUT! the bank continued to allow our debit card transactions to go threw even with account being negative. when all was said and done i owed the U.S. Bank for 18, yes 18 overdraft and or return fees. X 37.50each. it would of only been 3 or 4 of them if they would of declined my card charges. they informed me the reason my card was allowed to continue being approved was we were longtime outstanding customers. don't know how other banks treat their longtime customers, but U.S. Bank is losing 2 of theirs.

tomatogrower 7 years, 11 months ago

i was just giving some good money management tips for preventing overdrafts. Yes, there are problems with money, as you stated above, but if you have money problems, you should drink some cheaper coffee. Practical suggestions for managing your money is meant to be helpful.

mr_right_wing 7 years, 11 months ago

Excellent advice from a hateful 'defender'. Your car blows up or something else unexpected happens, make sure you don't miss any of your $4 cups of coffee!!

There is something a lot more cheap than a 'payday loan' it's called a savings account; in fact it can actually make you a LITTLE money (interest.) "Who can afford a savings account!?--defender would snarl...everyone can, even if you just put a few bucks in it a month Save up, don't touch it, then when your car blows up, you at least got some of the cash.

Speaking of your car blowing up defender; have you offended that many people on this forum that you're a little paranoid yourself?? Go ahead...."idiot, stupid, dummy!!!!" Defender never made it past 'playground politics.'

puddleglum 7 years, 11 months ago

I was just relating how a $4 cup of coffee can bounce a check.

You are right, many people have serious medical issues and etc....

but payday loans are overwhelmingly "used" to avoid bank NSF charges.

cars blow up too, and I would say that is a very common reason for payday loans as well. "Accusing people of buying $4 cups of coffee without knowing any of said folks is just ignorance" not ignorance at think every one that gets a payday loan NEEDS one? do you have any experience with payday loans, or the folks that have them? How many?

as far as the ignorance remark goes, look in the mirror.

mr_right_wing 7 years, 11 months ago

But that $4 could feed a starving child in Africa for 6 months! When you add in the nsf fee you're talking about feeding that child's kids for a lifetime! Didn't we learn anything from Sally Struthers??

Kyle Reed 7 years, 11 months ago

puddleglum used it in the scenario posted at 11:17 moron. settle down and quit spewing the same comment as a response to every single mention of the $4 coffee.

Kyle Reed 7 years, 11 months ago

You'll notice my post wasn't a response to you (like this one will be). I was responding to Defender.

mr_right_wing 7 years, 11 months ago

Haven't any of you learned? If your name isn't defender you're a blithering idiot who doesn't diserve to breath the same air as defender!!

puddleglum 7 years, 11 months ago

defender, take a chill pill. Nobody is making blanket statements here. I was just furnishing my own experience with bank NSF charges.

notice how I didn't say "I ran out and got a payday loan!"???????

my example has to do with NSF charges and the difference between a supposed 'predatory payday loan' and the banks' NSF charges...and the difference in fairness.

50YearResident 7 years, 11 months ago

The last I knew people had check book registers. 1)You start with your balance. 2) You write a check and substract that from the balance. 3) you now have a new balance in the register. This cylce continues, write check, substract = new balance. Now you have x amount of $ amount in the bank and need to write a check for x + 2 dollors. Do you write the check or wait to pay? It seems simple to me, if you don't have the money required in the bank you do not write the check. Simple arithmatic saves overdraft charges.

Fred Whitehead Jr. 7 years, 11 months ago

50 year, I had to laugh at your post. I can't agree more, but then I am 66 years old.

One of the things you did not mention is these "direct payment arrangements" The insurance company lures you into making these automatic withdrawels with a .0001% treduction of your premium if you go along with this. Then they change the payment date and boom, overdraft charge. Happened to me. Luckily, I have overdraft protection on my account.

You also did not address these ATM machines, it is real easy to get in trouble here. You need a few bucks for gas or something, and stop at the bank ATM and grab $40.00 (most of these machines disburse money in $20.00 bills only) get your gas and go home forgetting to put that withdrawal in your check register. BOOM, over draft. (Yeah, I keep extra in my account, but sometimes it gets hit a few too many times)

What it all aboils down to is keeping aware of your financial issues and making that a prime awareness. Difficult to do in today's society where everyone is headed 4 directions at once and dosn't have time to avoid the banks' beartraps.

Fred Whitehead Jr. 7 years, 11 months ago

Sorry, tomato, I think I jumped on the same issue up above. I have NEVER paid that much hard earned money for any beverage no matter how "hip" or "with it" "It" may happen to be.

The basic problem is simple. Irresponsibility. People who, like our government, want to live beyond their means, have all that the Jones family across the street have, you know the old story, keeping up with the Jonses.

The problem is that these folks do not want to prepare themselves to earn the necessary income that such high flying life style requires. They want the "stuff" but do not want to take the time and effort to earn the "stuff". Hence, millions of people are "in over their heads", "under water", choose your metaphor.

Life it this society lauds the guy who dies with the most toys. It is a systemic flaw that grabs far to many uneducated and clueless people who think that "we will pay the bill tomorrow" Like the government.

The real bellweather, however is back to a post above. Enough people willing to drop $4.00 on a cup of coffee (It is a cup of coffee, for God's sake!!!!) to support a nationwide franchise of this absolutely ridiculous enterprise.

mr_right_wing 7 years, 11 months ago

Yeah!! What a bunch of retards, right defender?

Jcjayhawk1 7 years, 11 months ago

Don't have the money? Don't spend it.

Read your deposit agreement when you open a checking account.

Familiarize your self with the end of business day.

The criminals that steal checks and write them & irresponsible people that don't have good banking habits are to blame. The bank must assume that your check will bounce....that's why your funds are not available right away. Since the check is a promise and not actual cash the value and legitimacy can only be proven when it clears.

chzypoof1 7 years, 11 months ago

Typical legislation to take care of the stupidity of our decisions....Does the government really need to step in because YOU made a bad decision? The information for the loan is at the top, in BOLD signed it. Enough said. It's a binding contract. I'm not sure where the "loan shark" comes into play here?

I would like to know the % of people that are NOT affected like know, the ones that pay back the loans, and move on. I would bet it's pretty high...

But as usual, the good ole government will bail us out....



just_another_bozo_on_this_bus 7 years, 11 months ago

By that logic, the government should also butt out of the Mafia loan shark business.

chzypoof1 7 years, 11 months ago

As usual bozo, your logic is flawed....Loan sharking is illegal, and you don't typically sign a contract that spells out terms....

Please government, save me from MY trangressions....


just_another_bozo_on_this_bus 7 years, 11 months ago

"you don't typically sign a contract that spells out terms...."

So if putting it in writing that failure to repay means they'll break your arms would make it OK?

BigPrune 7 years, 11 months ago

Does this mean the Federal govt will stop the banks from deciding when a check deposited is declared "collected" - which they do at their discretion? If you deposit a $10,000 check, even though the funds are electronically transferred, your bank can hold the first $5000 for a week and the other $5000 for an additional week, or they can decide when it is "collected." All the while, the bank is making interest off your money. BS

Jcjayhawk1 7 years, 11 months ago

It's odd that the bank would put a hold on an electronic transaction. In fact, in working for banks for 10 years I have never seen it happen. I'd go so far as to say that it doesn't happen. Don't like the bank making interest off of your money? The federal government does the same thing with your income taxes. the deposit agreement. It's not a mortgage loan agreement for goodness sake and the language is dumbed down so that anyone that can read can understand it.

The Federal Reserve (a private corporation) has more to do with the clearing of checks.

just_another_bozo_on_this_bus 7 years, 11 months ago

Yea, just because there are people out there desperate (and often uneducated) enough to allow themselves to be exploited doesn't mean that it should be legal.

Jcjayhawk1 7 years, 11 months ago

I would wager that many of the payday loan customers probably have cable TV, X BOX, and a flat screen but have no money to sustain their week to week priority expenses. I know many that do....same goes for a lot of welfare recipients.

just_another_bozo_on_this_bus 7 years, 11 months ago

Even if that's true, how does it justify what the payday loansharks are doing?

puddleglum 7 years, 11 months ago

Jcjayhawk1 is RIGHT ON! do you really think that EVERYONE that gets a payday loan NEEDS one?

Jcjayhawk1 7 years, 11 months ago

I'm just saying I know a few. I guess I could give you their names if you want specifics. I used to work with low income families and I have close friends in the social services field, we have talked about this many times. They see it every day. They get called out to a residence and sure as $h!% they have a flat screen, X Box or Playstation 3, brand name clothes, bare pantries, cars trashed with fast food wrappers, beat their kids and make a living off of assistance and unemployment. I know 3 different people that have been on unemployment for 2 plus years. There's no incentive to work. Get fired or laid off? Hell claim unemployment, stay home play games, smoke weed, and beat your kids. All i offer are first hand accounts. These people are out there and more than what most think.

volunteer 7 years, 11 months ago

Regarding electronic transfers...a month ago I sold some stock. I placed in person with the broker a sell order on a Wednesday (11 am) and he gave me a receipt indicating the price, etc. The broker swore the proceeds would be in my checking account by Friday...I said are you sure?

Broker said yes, and to make SURE, no need to come pick up a check from us; we will deposit it ELECTRONICALLY into your checking account. Guaranteed.

Called the bank Friday morning: it said the proceeds were not there. Immediately called the broker and he swore "We DID send the money electronically to your bank." Now, either the broker lied and his company (a big, well-known Swiss one) earned some interest by hanging on to the money over the week-end, or my bank, a local one, lied and received the proceeds but claimed it did not for a few days. (The proceeds were in the bank by Monday 9am)

No overdrafts, but annoyance.

GardenMomma 7 years, 11 months ago

Can you say "usury?"

u·su·ry [yoo-zhuh-ree] –noun, plural -ries. 1. the lending or practice of lending money at an exorbitant interest. 2. an exorbitant amount or rate of interest, esp. in excess of the legal rate. 3. Obsolete. interest paid for the use of money.


Orwell 7 years, 11 months ago

For most of my life it was literally a crime to charge the rates now charged by so-called "payday" lenders. For most of recorded history it's been against the tenets of our major religions. I guess these days profit trumps both faith and the public interest.

Linda Endicott 7 years, 11 months ago

Years and years ago, this is what happened to me...I got paid once a month, electronic deposit...even accounting for weekends, it should have been deposited about the same time every month, but never was...I thought I had $7 in my account, but I actually only had $5...wrote a check for $5.50, at the grocery know, milk, bread, cereal, that kind of stuff (does that make some of you feel better?)...what did the bank do? Rather than cover the remaining $.50 on the check (and I had banked there for years), they let the check bounce...and took the $5 I had left in there for part of the check charges...anymore, if you bounce a $5 check, you might as well figure on paying out at least $60 to take care of it, at both the bank and the business yiou wrote the check out to...

At another time, my car was parked along a street, in a perfectly legal zone...somebody backed out of their driveway and hit my three estimates, and since insurance companies always pick the lowest, even if you couldn't possibly get it fixed for that amount, I got a check from the other guy's insurance for $700...

Took it to my bank, and I could have gone to the teller's window, cashed it, and walked out that day with $700...but instead, I decided to deposit it in my checking account...whereby they promptly informed me I'd have to wait until the check cleared before I could use the money...didn't matter that it was a well-known insurance company (State Farm), or that I had been banking there for years and had never been known to bring them bogus checks before...nope, I had to wait a week for my money...

Seems to me that the banks need a huge kick in the pants, too...they take advantage of you everywhere they can legally do so...

puddleglum 7 years, 11 months ago

you said it. thanks for your personal example.

Mixolydian 7 years, 11 months ago

"Creating a federal agency to regulate payday lenders is among the many reforms under consideration in the financial overhaul bill that Congress was hashing out last week."

Creating an entirely new federal bureaucratic agency is the democrats response to every freaking issue.

God help us. 2010 and 2012 can't come soon enough.

PaydayLendingRep 7 years, 11 months ago

In response to the allegation that payday lenders are "predatory," I'd like to point out that the term "predatory lending" is often used incorrectly to describe subprime financial services, including payday loans. The definition of “predatory lending” is unclear, but even when looking at the range of definitions available, payday loans do not meet the criteria of “predatory lending.”

In fact, a study by Research Officer Donald Morgan of the Federal Reserve concluded that payday loans do not fit the definition of predatory because they are not a “welfare reducing” form of credit. To the contrary, the author suggests that payday lenders enhance the welfare of households by increasing the supply of credit.

socialjoe 7 years, 11 months ago

So, just a few questions...what kind of track record does our government possess with regulation of financial companies lately? How many people have actually used the payday loan product? What is being done about the billions of dollars lost on Wall Street? Is it more important to go after the payday loans than to protect our 401k's and mortgages from banks? Are payday customers getting a voice here or is it consumer advocate groups like the Center for Responsible Lending? Most people get a payday loan and pay it off within two weeks, paying a minimal charge of about 15 dollars per 100 borrowed. That is way cheaper than an NSF fee of 35 dollars or more or an NSF fee plus a returned check fee of 25.00 from a business. It is just a simple bridge loan which banks or credit unions do not provide. This article provides two sides of the argument but at least lets us choose which we want to side with.

dvrlover 7 years, 11 months ago

If "Main Street is not to pay for the sins of Wall Street", why is the government trying to regulate the industry out of existence? Short-term lending is one of the few options Main Street has available since this crisis hit. Is a shortage of options part of this relief?

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