Reader comments
Salt Lake seeks lender limits

awesomeron | 3:13 a.m. Sept. 25, 2008

I think that all these Payday Loan Companies, need to be put out of business. They are high interest debt traps. They make the poor poorer. They have some value if they are used responsibly for people with out credit who have cash flow problems. Like Auto Repairs or The Lights or Water are being turned off. A lot of people some times have a choice of lights or water.

However they are so often abused as in I want it Now. The loan and payback becomes bigger and earlier every month. Military are very bad with this. It is a Slippery Slop you do not want to start. I do not like them and I do not like them near Military Bases.

Its like Drinking and Smoking they advertise that they want you to Drink Responsibly and no smoke to excess but do they really mean it No. The Military does not even Tax. Booze and Cigs purchased in the PX or Nex, or Commissary. At Pearl Harbor they have their own Mall.

Loan Advance places Do not teach responsibility. They are modern day versions of the Loan Shark. You get trapped in the Cycle.

Anonymous | 4:04 a.m. Sept. 25, 2008

credit unions and banks charge even more. You go over your limit on a check card even by $5.00 and the access a 18.00-20.00 fee. Address this business practice while you are at it. Both are excessive and predatory in nature.

liberal Larry | 6:04 a.m. Sept. 25, 2008

As a society, we've decided that prostitution, certain drugs, and even gambling, should be outlawed. Although there are plenty of people who would pay for these vices, we've decided that it is in the best interests of society to ban them. We should also collectively decide that the predatory, bottom feeding, "pay day" lenders should also be banned. They prey on the working poor with their 500% interest rates. (I can't wait to see the "testimonials" from happy customers, who avoided bank fees, with handy payday loans!)

Comments continue below

oldman | 7:03 a.m. Sept. 25, 2008

Sharks. Wonder why people turn to these cons? Maybe because people are struggling to even put food on the table?

Cheaper than the alternative | 8:45 a.m. Sept. 25, 2008

The fact remains that fees charged by payday lenders are cheaper than bouncing a check. If you bounce a check you pay the bank or credit union $20 to $30 and the merchant you wrote the check to an additional $20 dollars. The average payday loan fee is between $8 and $15. Which one would you choose to pay?

Social Engineers and Community Organizers believe they are helping people by banning these loans. Instead they are limiting consumer freedom by making customers pay out the nose for overdraft and bounced check fees. Where is the real concern for what consumers pay?

Late to the Punch | 8:48 a.m. Sept. 25, 2008

I haven't seen a payday lender open up a new shop in at least a year in Salt Lake City. Salt Lake is a day late and a dollar short. (no pun intended)

Government to the rescue!!!!!

Kiss this | 8:51 a.m. Sept. 25, 2008

Hey Liberal Larry, educate yourself before your fingers start moving. I have used a payday lender a couple times. IT IS cheaper than bouncing a check! 500% APR, believe everything you read, that's a smart way to live! You cannot have these loans out for a year, so the APR is misleading. I paid $16.00 to borrow $100.00 for a week, better than paying my bank and merchants $25.00 each for a bounced check don't you think? It's my money, don't tell me how to spend it or what to do with it. And thanks to our "Society" for banning things that are unfit, but don't try to control my money, it's mine, I earned it. "Society" gets enough of it anyways, let me spend what's left however I see fit.

Get a Clue | 9:43 a.m. Sept. 25, 2008

First of all, payday lenders won't lend to active military personnel. So, awesomeron, you're entire argument makes it clear to me that you don't know what you're talking about. When you sound off trying to educate people, please make sure you're educated yourself on the subject.

Second, do some due diligence around the industry to see the benefits and drawbacks to a society that includes payday lenders. The lenders wouldn't exist if there wasn't a market for it. Bounced check and overdraft fees at credit unions have created a niche market for the payday lending industry. If we forced credit unions and banks to lower their fees, then it would force the payday lenders to do the same.

If you want to do some good to society, work on the overdraft fees and bounced check fees first. They are the top of the food chain!

principle paul | 11:12 a.m. Sept. 25, 2008

Let's take short-term credit choices away from adults, who take 120 percent mortgages and own 35 Mastercards. Next stop people from using those cards which cause more bankruptcies than upside down auto loans. While socializing society, ban loans on cars for more than 70% of the car's value--make people walk instead. Let's also ban late fees on checks so we can put Credit Unions out of business--I've heard that 60% of Credit Union revenues are fees. Unacceptable. Predatory. On our journey, we could means-test the right to have large families...ok I'll stop. Payday interest is "high" for the same reason cabs are expensive--and used for short trips. It costs the same administratively to loan $100 as it does to do an auto loan, so the cost is really a fee. I guess my point is that adults can either be trusted to make adult financial decisions, and be responsible for them, or they cannot. If you want to take control of adult financial decisions, go all the way. Force responsibility. In the meantime, stop blaming a person's financial problems on something as insignificant as a $300 payday loan which is capped by law at 12 weeks of interest.

Anonymous | 11:50 a.m. Sept. 25, 2008

I just dont see how banks are doing as bad as they say seeing how I will pay at least two times in intrest what my house is worth for the loan. That is the case with most people in a 30 year mortgage.It is total BS.

Robby | 3:20 p.m. Sept. 25, 2008

Are you kidding me? I cannot believe the comment that we are sending mixed messages to students we are trying to teach fiscal responsibility when they walk out of school and see a payday advance store. What about stores selling lottery tickets, booze and cigarettes? What about fast food retuarants? Shouldn't we protect our kids from all of these things? How stupid!!

Excessive Fees | 7:37 p.m. Sept. 25, 2008

We should go after all fees that are excessive including banks, credit unions, credit card companies and payday lenders.

Credit fees have increased excessively over the years and are not justified.

What a joke!!! | 10:39 p.m. Sept. 25, 2008

We are facing a very serious national financial crisis and Salt Lake is squabbling over $15 fees on $200 loans. Limiting credit options during a credit crunch. Not smart.

Allen I. | 8:00 a.m. Sept. 26, 2008

It is getting harder and harder to borrow money. I like the fact that I can go to a payday lender and borrow a couple hundred when I need it. Keep this option available to me and others.

competition drives prices down | 8:39 p.m. Sept. 26, 2008

If we limit the number of payday lenders, they will have fewer businesses to compete against and this could potentially increase prices to customers. Payday lenders are a much needed resource for me and my family and I appreciate the service they offer. The payday lender I use has really good prices and even lets me make payments to pay off my loan. I am glad they are there for me and I have used them to avoid making a late payment on my mortgage, so I was able to refinance and get out of my ARM that was getting higher and higher.

I wish government would leave this industry alone and let the market determine the rates and number of stores.

thunderbolt | 3:42 p.m. Oct. 5, 2008

It's absurd that in this time of crisis, our leaders and officials are priding themselves in obstructing economic growth. Whatever your opinion of payday lenders, they provide jobs and loans: two things that are becoming more and more scarce. We need to shift our priorities to enabling growth, not obstructing it.

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