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Lawsuits by payday lenders swamp courts
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Keoki | 2:05 a.m. Feb. 3, 2008
Numbers are actually worse. Most borrowers have taken out many loans and rolled
them over before they finally can't afford or choose not to pay them.
If we assume a low number like 10 loans taken out and either repaid or rolled over, before becoming delinquent, this 1% then equates to 10% of customers eventually having the loan repayment pursued in small claims court.
This is disgusting and anyone who defends an industry that preys on the poor in this manner needs to turn in their humanity cards.
If we assume a low number like 10 loans taken out and either repaid or rolled over, before becoming delinquent, this 1% then equates to 10% of customers eventually having the loan repayment pursued in small claims court.
This is disgusting and anyone who defends an industry that preys on the poor in this manner needs to turn in their humanity cards.
Bob G | 4:05 a.m. Feb. 3, 2008
These loan sharks should be thrown out of court as criminals. All their loans
should be invalidated as criminal also and the stores shut down. Loan sharking
has moved from the streets to permenant buildings. Has the definition of loan
shark been and that practice been legalized? How can they stay in business and
practice as loan sharks? Like all loan sharks, they know that their customers
cannot repay these loans without using an enforcer and that enforcer is now our
courts. Throw the bums out of court, they deserve to lose, contract or no
contract does not legalize this practice. These companies are criminal in their
practices and contracts they write and its time for legal action to put them out
of business, first by throwing their claims out of court as illegal lending and
lending to known risks in the first place. They should suffer some of their own
failures to properly screen borrowers. We need some judges with the cahonas to
throw them out and classify them as illegal financial businesses.
Comments continue below
Jason | 4:20 a.m. Feb. 3, 2008
Payday lenders are a cancer to our society. they enrich themselves by exploiting
the poor and financially uneducated. I've contacted my republican
legislator from Provo about this issue multiple times only to be told that there
is nothing he can do about it because the "banks won't let
them"... give me a break. the fact of the matter is our legislature is
bought out by these buffoons. It is a shame that they don't have the
backbone to stand up to such a immoral group of thugs. many states have enacted
common sense legislation to restrict outrageous fees and interest rates... but
not Utah. I look forward to the day when someone courageous in the legislature
will finally stand up against the payday lenders.
vern | 4:58 a.m. Feb. 3, 2008
lobbyist(bribers)bribe the lawmakers.the lawmakers give the bribers any law or
regulation they want.is this news to anyone?????THROW THE BUMS OUT!!!!!!
Barry | 5:52 a.m. Feb. 3, 2008
The fact that people sign an agreement for 521% interest indicates that even
though he harps and harps people do not yet understand. Rightfully theirs????
521% interest is a bit high don't you think? The word "usury"
comes to mind.
bk attorney | 6:20 a.m. Feb. 3, 2008
I believe that the 99% figure is misleading. What happens is that the debtors
start rolling them over and getting in a "debt trap". That goes on
for a while before the debtor just gives up because they can't keep up.
Every time that happens, it counts as a "paid loan". In addition, the
debtor often signs to have their paychecks garnished without the need for a
judgment. That also counts as a "paid loan".
I'm as much for deregulation as the next guy, but something needs to be done. I see far too many of these in the cases I handle.
I'm as much for deregulation as the next guy, but something needs to be done. I see far too many of these in the cases I handle.
Try reading it again | 7:00 a.m. Feb. 3, 2008
The article clearly states that without aggregate data from the payday loan
indsutry, we can't know if that 1% figure is correct or not. Given the huge
number of small claims cases, the implication is clearly not.
Amazed | 7:29 a.m. Feb. 3, 2008
What is it with Utah and payday lenders? We seem to have them on every corner.
In all my travels out of state I have yet to see another place have so many as
Utah.
Andrew | 7:41 a.m. Feb. 3, 2008
If the nearly 27,000 lawsuits represents the other 1%, that means there are
about 2,700,000 of these loans processed a year. So pretty much everyone in Utah
is getting one of these a year... including the kids.
I'm a little more likely to trust the newspaper than companies who prey on customers in need of a "quick fix."
I'm a little more likely to trust the newspaper than companies who prey on customers in need of a "quick fix."
David R | 8:12 a.m. Feb. 3, 2008
I understood the article to say 99% to be an industry claim, not substantiated
as fact. I don't see the positive of a predatory lender staing an
unsubstantiated number that defelcts the attention from the havoc they create/
samhill | 8:17 a.m. Feb. 3, 2008
The most telling part of this entire story was told in the first couple of
paragraphs...."only a few years ago was completely illegal (before interest
rate caps were erased)"
Who was the genius who determined that those caps should be erased? Has anyone investigated for the almost inevitable conflict of interest (no pun intended) with the "legislator/s" and the loan sharks?
Who was the genius who determined that those caps should be erased? Has anyone investigated for the almost inevitable conflict of interest (no pun intended) with the "legislator/s" and the loan sharks?
Re:Reaching for Something | 8:20 a.m. Feb. 3, 2008
You should have revealed your real Identifty. Mr.Leach! This is a industry that
preys on the the most needy of our society and hurt us all more in the long run.
Mr. Davidson excellent job.
kay | 8:32 a.m. Feb. 3, 2008
I am sorry to inform you but as a former manager of a small loan company the 99%
is false. On avergage 20% are more then a month late and 12% are taken to court
or written off as bad debt. But hey the loan companys are running scared.
Because for years people have been trying to change the laws and cap the rates.
In fact that is why I left my job, I made great money and had wonderful bennis.
But I was also selling my soul for them. Nothing is quite as sweet as being
told that you have to sue a family whose 2 children just died in a car crash.
Because hey we need to get our money......bottom line!!!
Jay | 8:44 a.m. Feb. 3, 2008
The point was made, but there was no data to back it up. The 1% claim would be
more persuasive if they opened their books to verify it.
KW | 9:03 a.m. Feb. 3, 2008
I like the fact that the Payday loan people can't do math. Less than 1% of
one million would less than 10,000, not almost 27,000.
If they really are giving out one million loans in Utah, given our population, that means something like one out of every two adults had to get a loan from them. Do all of you remember doing that?
Or it means a lot of people who takes out a Payday loan really does have to take out another, and another, and another - until he or she goes broke, gets sued, and loses everything he or she owns. That final court case only represents the last in a series of loans.
Or it means the 1% failure number they cite isn't accurate. Remember, we don't know because they haven't shown us any data. It's like a magician who blindfolds his audience and then tells them to believe that he can make an elephant fly.
What we really need to ask is why don't the Payday loan people want the state of Utah to take off its blindfold?
If they really are giving out one million loans in Utah, given our population, that means something like one out of every two adults had to get a loan from them. Do all of you remember doing that?
Or it means a lot of people who takes out a Payday loan really does have to take out another, and another, and another - until he or she goes broke, gets sued, and loses everything he or she owns. That final court case only represents the last in a series of loans.
Or it means the 1% failure number they cite isn't accurate. Remember, we don't know because they haven't shown us any data. It's like a magician who blindfolds his audience and then tells them to believe that he can make an elephant fly.
What we really need to ask is why don't the Payday loan people want the state of Utah to take off its blindfold?
Bob | 9:06 a.m. Feb. 3, 2008
Part of the problem is with the Banks. It is nearly impossible for a young
person who does not have a bank account to cash their paycheck. I am often
needed to assist my kids in the cashing of their paychecks. When I was young
you could cash your paycheck almost anywhere.
Anon | 9:20 a.m. Feb. 3, 2008
The root of every evil act is the desire for more money, says Paul. Maybe we
should outlaw fractional banking and interest on loans at all? Isn't
interest the foundation of debt?
Pay Day Loans | 9:19 a.m. Feb. 3, 2008
These places are taking advantage of the poor and/or financially uneducated.
Charging a 500% APR is ridiculous. They are taking money from those who are
struggling the most. If I could make $10 million a year by opening some Pay Day
Loan "service" locations, I would never do it. This is robbing from
the poor to feed the rich. This is pretty much unethical in my book. Just
because someone is willing to pay the fees doesn't make it ok. A suicide
bomber is willing to take his own life but that doesn't mean those
orchestrating the act aren't evil.
There are other ways to make ends meet without paying exorbiant fees. Get creative and learn the time value of money. These places need to go out of business so the owners can find a productive way to make money and contribute to society rather than riding on the backs of the poor.
There are other ways to make ends meet without paying exorbiant fees. Get creative and learn the time value of money. These places need to go out of business so the owners can find a productive way to make money and contribute to society rather than riding on the backs of the poor.
Anonymous | 9:28 a.m. Feb. 3, 2008
Litigation is part of doing business but forcing people that are low income to
travel to Provo to dispute sounds like convenience for the company and a shady
way for them to get a disproportionate amount of default judgments. I think that
point is a valid piece of journalism and the legislature should do something
about it.
Against predatory lending | 9:43 a.m. Feb. 3, 2008
" But payday loan industry spokesmen say 99 percent of their loans in Utah
are successfully repaid without court action, and they say they use court action
only as a last resort."
Exactly why this industry needs regulating, they are reporting the numbers, if they do not want the state to regulate their industry, how about letting an outside auditing company authenticate their numbers.
"In 2007 � which was not an election year � the industry gave $30,200 combined to 37 legislators (out of 104 total). Payday lenders gave more than credit unions or banks, which are traditionally some of the biggest donors in the state."
I find this disgusting, why do legislators, both local and national continue to tell us that campaign donations have no effect on how they vote. I for one do not believe them.
Bottom line....You and I pay for this! Misinformed and ignorant people are forced into bankrupcy and as a result we pay MORE for our legimitate consumer loans and credit cards.
To our legislators: This industry demands that you do something to at least make them honest in what they are telling the public and their customers.
Exactly why this industry needs regulating, they are reporting the numbers, if they do not want the state to regulate their industry, how about letting an outside auditing company authenticate their numbers.
"In 2007 � which was not an election year � the industry gave $30,200 combined to 37 legislators (out of 104 total). Payday lenders gave more than credit unions or banks, which are traditionally some of the biggest donors in the state."
I find this disgusting, why do legislators, both local and national continue to tell us that campaign donations have no effect on how they vote. I for one do not believe them.
Bottom line....You and I pay for this! Misinformed and ignorant people are forced into bankrupcy and as a result we pay MORE for our legimitate consumer loans and credit cards.
To our legislators: This industry demands that you do something to at least make them honest in what they are telling the public and their customers.
uncannygunman | 9:47 a.m. Feb. 3, 2008
1% sounds low, but 1% of a lot is still a lot! Regardless of how one feels
about payday lending, this sounds like a crisis for the small claims system.
At the very least, new rules regarding venue of small claims actions are in order. How about limiting small claims courts to hearing cases that arise in the same county or judicial district? Locals judging locals seems like the way these courts are supposed to work to begin with. And it would limit outfits like Check City from playing these default-encouraging games with their victims.
At the very least, new rules regarding venue of small claims actions are in order. How about limiting small claims courts to hearing cases that arise in the same county or judicial district? Locals judging locals seems like the way these courts are supposed to work to begin with. And it would limit outfits like Check City from playing these default-encouraging games with their victims.
jr | 9:56 a.m. Feb. 3, 2008
PayDay Loans are supported by the good old boys (Republicans) and no doubt they
have their hands full of the dough they are making of the backs of the poor.
Mark Shurtleff doesn't have an issue with them charging such high interests
rates either. When will our legislature listen to the people and show they are
really concerned for their voters - never as the sheep keep voting them back
into office. Maybe it is time for the media to make a list of all the
Legislatures on the take and come election time publish it daily. Time to get
rid of the wolves in sheeps clothing people of UTAH
DR Don | 10:14 a.m. Feb. 3, 2008
"These companies are criminal in their practices and contracts they write
and its time for legal action to put them out of business, first by throwing
their claims out of court as illegal lending and lending to known risks in the
first place."
Kind of hard to do that when the Legislature has legalized the practice, isn't it? Or do you prefer that judges enforce or discard laws as they see fit, thus acting as both the Judicial and Legislative branches of government?
The problem with the payday loan industry is the permissive laws that allows it to exist in its' present form. We should be railing at the Legislature for regulations to curb predatory lending practices. The filing fees paid to the courts do not cover all the court expenses to hear these cases, thus we, the taxpayers, are subsidizing and encouraging predatory loan practices.
Call and write your legislators now to enact more oversight and regulation on the industry.
Kind of hard to do that when the Legislature has legalized the practice, isn't it? Or do you prefer that judges enforce or discard laws as they see fit, thus acting as both the Judicial and Legislative branches of government?
The problem with the payday loan industry is the permissive laws that allows it to exist in its' present form. We should be railing at the Legislature for regulations to curb predatory lending practices. The filing fees paid to the courts do not cover all the court expenses to hear these cases, thus we, the taxpayers, are subsidizing and encouraging predatory loan practices.
Call and write your legislators now to enact more oversight and regulation on the industry.
karl | 10:16 a.m. Feb. 3, 2008
I agree, this loan sharks are a cancer to any society. It should be illegal to
allow a 500% interest on the already poor. Lets kikck them out of Utah.
Get the facts | 10:33 a.m. Feb. 3, 2008
The facts are out there, stop relying on the industry or the newspaper making
the issue sensationalistic.
I would point you to the Federal Reserve Bank of New York that did an analysis. Also the Wall Street Journal (not the Bill Clinton opinion, the fact based article). Studies that show what happens when you shut down the industry like they did in Georgia and North Carolina.
Get your own, fact-based, opinion.
I would point you to the Federal Reserve Bank of New York that did an analysis. Also the Wall Street Journal (not the Bill Clinton opinion, the fact based article). Studies that show what happens when you shut down the industry like they did in Georgia and North Carolina.
Get your own, fact-based, opinion.
Capitalism | 10:33 a.m. Feb. 3, 2008
People, for one thing, the 520% is annualized, so the $20 up front is more of a
service charge that only becomes bad if you don't pay it off on time. And
really, this is just capitalism. If people don't patronize these stores,
they won't exist. It's that easy. Let free-market economics work its
magic and let people be responsible for their own actions.
Voice of Reason (Not) | 10:39 a.m. Feb. 3, 2008
Several questions. If you are trying to help the people that take out these
loans, what are YOU going to do to help them? Where will they turn next? IF
there is no need THEN there is no industry.
You cannot just legislate away a need. You can't turn to the banks. They created the need by making these people unbankable. Now the banks are making these loans under the phrase, deferred deposit advance. Where is your animosity towards the banks?
521% for Payday Loans? Since when do we take a fee and extrapolate it to an APR? When it looks worse that way and we are opposed to the product. Figure the fees as a yearly APR on a bounced check or ATM fees. Those get above 1,000% quickly and they destroy your credit.
Figure out those questions and you will be the next hot thing. Please figure out how to do this so we can get back to demonizing other capitalistic propositions. Otherwise, pretty soon we can all contribute to 5 year plans for the collective good, singing party worker songs and reminiscing about the days we were against the evil empire.
You cannot just legislate away a need. You can't turn to the banks. They created the need by making these people unbankable. Now the banks are making these loans under the phrase, deferred deposit advance. Where is your animosity towards the banks?
521% for Payday Loans? Since when do we take a fee and extrapolate it to an APR? When it looks worse that way and we are opposed to the product. Figure the fees as a yearly APR on a bounced check or ATM fees. Those get above 1,000% quickly and they destroy your credit.
Figure out those questions and you will be the next hot thing. Please figure out how to do this so we can get back to demonizing other capitalistic propositions. Otherwise, pretty soon we can all contribute to 5 year plans for the collective good, singing party worker songs and reminiscing about the days we were against the evil empire.
Laura | 10:48 a.m. Feb. 3, 2008
they are loan sharks and please don't get caught up in thier trap I did and
I had to file bankrupcy just to live I did the loan thing for 2 years straight
and I could not get caught up on anything. STAY AWAY FROM PAYDAY LOANS they are
evil and can make your life a living night mare
LVLV | 10:55 a.m. Feb. 3, 2008
Yeah, don't look to the legislature. They're the ones that allowed
this to take place.
Nonetheless, where else are these borrowers going to find someone to lend to them? The banks? I think not. They don't have the credit to borrower from a bank or CU. They don't take care of their credit, and then wonder why they have to pay such high interest rates? With the credit records most of these borrowers have, you wouldn't lend them a dime.
And, if any of you were in the business (set up your own loan office, you kind-hearted souls), and lent someone $100 for two weeks, how much interest would you charge? Remember, of course, that you have to earn enough to cover all of your overhead (rent, payroll, etc). The cost to process a $100 loan is the same as it is to process a $100,000 loan. So, charging 10% on the $100,000 loan yields $10,000. On the $100 loan, $10. Good luck making a living off of that.
I don't believe anyone held a gun to a person's head and said "You HAVE to borrow money from a payday lender!"
Nonetheless, where else are these borrowers going to find someone to lend to them? The banks? I think not. They don't have the credit to borrower from a bank or CU. They don't take care of their credit, and then wonder why they have to pay such high interest rates? With the credit records most of these borrowers have, you wouldn't lend them a dime.
And, if any of you were in the business (set up your own loan office, you kind-hearted souls), and lent someone $100 for two weeks, how much interest would you charge? Remember, of course, that you have to earn enough to cover all of your overhead (rent, payroll, etc). The cost to process a $100 loan is the same as it is to process a $100,000 loan. So, charging 10% on the $100,000 loan yields $10,000. On the $100 loan, $10. Good luck making a living off of that.
I don't believe anyone held a gun to a person's head and said "You HAVE to borrow money from a payday lender!"
oldman | 11:08 a.m. Feb. 3, 2008
Thank goodness we have a government full of lobbyists and crooks and do nothing
politicians who really care for what is happening to America. The politicians
and the predators have no shame and could care less about the damage they do.
The dollar is god in this country and obtaining it at other's expense is
the American way. Pathetic.
Nevada Bob | 11:08 a.m. Feb. 3, 2008
Apparently, you mormons aren't helping the poor enough. Might it be that
they have no place to turn but the payday lenders? Why is that? So, let's
say we do get rid of all the payday lenders. The "poor and/or financially
uneducated" as described above won't be able to borrow from
'legitimate' lenders, like banks. What will you do to help them? Teach
them? How? Fix their broken-down car for them? I doubt it. Yeah, you all talk a
good game. Very high and mighty. But there it stops.
llw | 11:22 a.m. Feb. 3, 2008
One point I think everyone is missing is that our tax dollars are paying for the
courts that are swamped with these cases. Is that really where you want your
money to go? These businesses are taking advantage of the poor and/or desperate
and then using our money to take them to court. I know there are fees for filing
but I'm sure the bulk of it comes out of our pockets. The payday loan
industry needs to be regulated.
Remember Popeye | 11:46 a.m. Feb. 3, 2008
"I'll gladly pay you Tuesday for a hamburger today" Was a comic
line in our old cartoons. But a desperate person or a person in trouble will do
anything, even what may seem like a rationale decision at the time to obtain
cash. It is true that most of these get into more trouble by borrowing from
another to repay the first.Some resort to crime, which everybody pays for .
Because it does cost the entire community a great deal when these end up in
courts, I think this ought to be closely looked at by our legislation and
outlawed. Desperate people are not in a rational state of mind..Would you
expect a frantic person to sign a binding legal document with you while under
great distress. Well, that is exactly what these places do..Only they make it
seem wonderful by being pleasant, easy, .Thay even have a toy area for your
children..They are shady, prey on the weak and need to be shut down. Utah needs
to set up another form of temp. "help" with a legitimate interest rate
and adequate counseling which includes job placement skills for repayment.
Doug | 12:14 p.m. Feb. 3, 2008
The last paragraph of the story is plain silly. What sense is gained by
comparing the number of loan facilities to food places? Journalists should do
better.
Thaddeus | 1:11 p.m. Feb. 3, 2008
As long as the fat schlubs in the Utah Legislature take the lobbying
perks(bribes) from the payday-type lendors, and refuse to enact anti-usury laws,
than Utah will ontinue to be blighted with these dumps that offer everything
from "title loans" to "payday advances" and everything in
between. For a Legislator to say that "banks won't let them"
reduce the rates that even a self respeting loan shark or the Mob won't
charge is asinine on it's face, besides being a flat-out LIE. It's
always ALL about the money, and the Legislators just don't care. Throw them
ALL out, and NOW.
A Racket | 2:25 p.m. Feb. 3, 2008
My son and his wife were out of work, no income due to an injury, and yet they
were both able to obtain a "pay day" loan. They have finally got it
repaid, but the interest was extremely high, the place called them on the phone
(my phone, since they have been living with us) EVERY DAY. Perhaps they do a
good service when people find themselves short and are in an emergency
situation, but the interest rates should DEFINITELY be capped at no higher than
high-rate credit cards, about 30%. They would still be able to make money
because more of the borrowers would be able to pay off the loan without
defaulting and clogging the courts with these ridiculous law suits.
MadMax | 3:20 p.m. Feb. 3, 2008
Usury was against the law. Pay lenders engage in that every day. Those who
borrow money from these vultures are either desperate or ill informed. To say
that the legislature can not stop this practice is ridiculous. Pass a dang law
against it. You came up with money for Dave Checketts and he doesn't need
it. It is the legislatures job to protect and serve the public. Just do it!
If you are unable to accomplish that, resign and we'll find someone who
can. Hey, Mr. and Ms. Public will you remember this at the next election along
with all the other non-friendly to the public cappers they pull or forget and
return incumbents?
Jana from Albuquerque | 3:41 p.m. Feb. 3, 2008
Hey Nevada Bob, since when is it soley the Mormon's responsibility to take
care of the poor and needy??
Daryl Tanner | 4:15 p.m. Feb. 3, 2008
North Carolina has passed laws against these types of lenders and they have all
left their state.
Utah can do it to.
Utah can do it to.
Federalist Fred | 4:21 p.m. Feb. 3, 2008
Look at the article again everyone. Davidson uses 27000 loans over THREE years.
Why not just state that that is about 9000 a year. The rep from the industry
said that there are about 1 million transactions a year. When I do the
math..... that is about less than 1 percent.
Davidson has to use 27000 to make it sound larger than it is so someone will read his article.
By the way. Interest on these loans is capped at 12 weeks. Period.
If anyone in the market can offer these loans at a lower rate than these payday lender guys then great! But last time I checked no one was willing to do it. Why is that? Maybe the good people on this comment board are willing to pull money out of their pocket and lend it at 18% APR. I guess they are not that community minded.
Davidson has to use 27000 to make it sound larger than it is so someone will read his article.
By the way. Interest on these loans is capped at 12 weeks. Period.
If anyone in the market can offer these loans at a lower rate than these payday lender guys then great! But last time I checked no one was willing to do it. Why is that? Maybe the good people on this comment board are willing to pull money out of their pocket and lend it at 18% APR. I guess they are not that community minded.
Anonymous | 5:51 p.m. Feb. 3, 2008
Hey Federalist Fred,
One issue with the industry is that it engages in predatory practices. What does that mean? Well, that 12 week interest cap is often exceeded, ILLEGALLY. Customers are often scammed into paying that illegal interest. Why does that happen? Little regulation or oversight.
You are right that the author uses the number 27,000 to make a point. To me that number isn't very meaningful. However, I am astonished that such a high percentage of small claims cases relate to payday loan defaults. Those figures are important. Finally, the small print that requires customers of Check City to travel to Provo if a claim is filed in small claims court should raise some eyebrows. That is an unreasonable burden and Check City knows that.
Obviously there is a market for these services, but when the industry is unwilling to effectively regulate themselves then the government should do that for them.
One issue with the industry is that it engages in predatory practices. What does that mean? Well, that 12 week interest cap is often exceeded, ILLEGALLY. Customers are often scammed into paying that illegal interest. Why does that happen? Little regulation or oversight.
You are right that the author uses the number 27,000 to make a point. To me that number isn't very meaningful. However, I am astonished that such a high percentage of small claims cases relate to payday loan defaults. Those figures are important. Finally, the small print that requires customers of Check City to travel to Provo if a claim is filed in small claims court should raise some eyebrows. That is an unreasonable burden and Check City knows that.
Obviously there is a market for these services, but when the industry is unwilling to effectively regulate themselves then the government should do that for them.
hey Nevada Bob | 6:56 p.m. Feb. 3, 2008
Why don't you come over here and take care of the
poor and needy. Then, we won't need pay day loans.
It is pretty ridiculous to expect the LDS Church to take care of everyone's financial problems.
Nevada Bob, maybe you were just teasing. I don't think anyone could really be so simple minded.
poor and needy. Then, we won't need pay day loans.
It is pretty ridiculous to expect the LDS Church to take care of everyone's financial problems.
Nevada Bob, maybe you were just teasing. I don't think anyone could really be so simple minded.
Brian | 9:05 p.m. Feb. 3, 2008
It would take a little work but I would really like to know the amount of taxes
being spent on the court system...Judges, clerks, buildings, and utilities etc.
to support these lenders in their collection efforts
Bob | 9:36 p.m. Feb. 3, 2008
Anyone suprised it is Provo leading the way? Who lives in Provo anyway?
Bonnie | 9:38 p.m. Feb. 3, 2008
Capitalism indeed!!!
"Grinding the face of the poor..." It's just capitalism, isn't it?
"Grinding the face of the poor..." It's just capitalism, isn't it?
Utahgirl | 9:47 p.m. Feb. 3, 2008
For everyone's information, payday lenders are limited to collecting
interest for only twelve weeks. So if they're charging 520% per year, that
ends up being about 120% of the loan amount after 12 weeks, then interest stops.
This is significantly less than debtors suffer in damages for a bounced check
by our laws (which are 300% at the maximum, and the principal plus $500 at the
minimum), not to mention their bank's fees. This fact is routinely left
out when payday interest rates are talked about.
SS | 9:51 p.m. Feb. 3, 2008
We need usury laws here, with no exception for payday loans. Then all this
nonsense would go away. I am a capitalist, but this is not capitalism, it is
preying on the poor and uneducated.
I worked in a payday store | 10:17 p.m. Feb. 3, 2008
Anyone who wants to be open minded should read the study conducted by the
Federal Reserve Bank of New York. Google it. Read it. Make up your own mind.
Re: Darryl Tanner | 11:53 p.m. Feb. 3, 2008
You are right, NC did pass a law against these lenders and guess what happened?
The Federal Reserve conducted research and discovered that:
-The number of bankruptcy filing increased
-The number of overdraft and bounced check fees increased (Credit Unions love hearing that!)
-The number of late payments on other forms of credit increased as well.
Go ahead, ban payday lending and everyone's credit problems will be solved (Ha Ha!).
The whole issue really boils down to personal responsibility and consumer education. If we taught basic economics in high school and (personal responsibility to our youth) instead of letting legislators, lobbyists, and consumer advocates dicate to us what is right and wrong we would see people with fewer credit problems.
-The number of bankruptcy filing increased
-The number of overdraft and bounced check fees increased (Credit Unions love hearing that!)
-The number of late payments on other forms of credit increased as well.
Go ahead, ban payday lending and everyone's credit problems will be solved (Ha Ha!).
The whole issue really boils down to personal responsibility and consumer education. If we taught basic economics in high school and (personal responsibility to our youth) instead of letting legislators, lobbyists, and consumer advocates dicate to us what is right and wrong we would see people with fewer credit problems.
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Sorry these 1% of borrowers took out loans and the companies had to sue to get their money back. Doesn't any person or business in this country have the right to litigate for what is rightfully theirs?
I understand the members of the media wanting to inform people about issues, but Davidson harps and harps on this issue again and again. There is no objectivity to his payday lending or legislative stories anymore.