Deseret News | Provo eyes restrictions on payday loan stores

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Provo eyes restrictions on payday loan stores

What about Credit Unions? | 2:02 a.m. Aug. 16, 2008

Will America First credit union face the same ban from Provo city? I have an account with them and they have their own payday loan they are trying to push on me. Why is the credit union getting in this business?

Are banks and credit unions not making enough money off their bounced check and overdraft protection fees?

Bob G | 6:22 a.m. Aug. 16, 2008

What confuses me is how did these loan sharks get a license to run a loan shark business? Loan sharks on the streets are cheaper and easier to deal with than these businesses. Somehow they have turned the loan sharking business into a so called respectfull occupation. These pay day loan shops are worse than prostitution rings on a community. They undermine and persecute those least able to understand what they are getting into. Loan sharks used to have their own enforcers to collect loans, now they just use our courts and law enforcement to collect at a very reduced cost to the loan sharks. Licensed or not, these loan sharking shops are what they are. They even can legally buy off public officials with this license and call it a donation to election campains. These shops are predatory and licensed to operate an illegal enterprise. Like sex predators, we can do without them. One that is a predator of the same group of people as other illegal loan sharks. Loan sharks are not beneficial to the community or its citizens.

Stupid Idea | 7:38 a.m. Aug. 16, 2008

What are they thinking? Isin't that what they have banks for, I think Pay Day Loans are just like gambeling, I see the one on 3rd South It hardly has any business, We have enough banks in the UT County areas, why would we have to put another Pay Day Loan Store that just seems quit stupid, Lets think this out,

Comments continue below

Anonymous | 8:00 a.m. Aug. 16, 2008

One of these stores is too many.

Plus why do they have to make them look so UGLY????

Stewart | 9:13 a.m. Aug. 16, 2008

Zoning and limiting the numbers is a meaningless effort. It only allows more profit for those that are licensed. Payday lenders are not much different than the mob loan sharks of a generation ago, other than they aren't allowed to break your fingers, or threaten your family.

The solution is a state usury law like we had thirty or so years ago. If payday lenders were only allowed to charge 2 or 3 percent per month, most of them would soon go away. These bottom feeders would like us to believe that they are a necessary evil, but they are part of the problem and only help people dig their pit deeper. Pawn shops are able to cover much of the need just as they have always done.

This segment of society is unable to protect its self. Illegal drug dealers feel that they also provide a necessary service to those that need their product, but society tries to protect them. People who use payday lenders need the help of society to protect them as well.

Clifford | 9:22 a.m. Aug. 16, 2008

It is a shame and a disgrace to the state of Utah that these sorts of businesses are allowed to operate; they prey on those who are least able to understand how they are being sharked.

Concerned,,, | 10:03 a.m. Aug. 16, 2008

Health market competition drives price down and service up. I pay $8.00 per hundred per week, which is a lot cheaper than my bank which charged me $34.00 on a $5.00 purchase that went into my overdraft. I wish I would have taken out the $8.00 loan and saved myself some money.
I hope my freedom to access credit that is suitable for me is not further impeded by intrusive government restrictions and regulations.

Customers appreciate usï¿½ | 10:37 a.m. Aug. 16, 2008

I work in the payday loan business and I am very proud to work in an industry that is so involved in the community, that really respects and cares for its customers and saves people money and potential credit dings.

I have been in the industry for over 6 years and I have had a good experience the entire time. I work with customers experiencing a difficult time and help bridge the gap between paydays. I always get thank you cards and so much gratitude from my customersï¿½ it is very rewarding. I am so proud of the company I work for, I really feel like we are making a positive difference in many of my customerï¿½s lives.

A valuable service | 10:44 a.m. Aug. 16, 2008

Some people just do not have access to other forms of credit, they cannot ask family, or they appreciate the convenience of the payday lender. Most of my customers only borrow around $300 and pay if off in two weeks. We help fix their car, pay for gas expenses, or buy medication. Most of my customers are able to pay off their loan easily, they realize there is a shortage in cash flow and pick up extra hours at work, take on a part time job, or have their spouse work a few months to get caught up. We are there immediately to help bridge the gap until the cash flow issue or extra expenses are taken care of.

Critics of the industry just donï¿½t understand the business and assume that every customer has a bad experience, which is not the case. The few people who have had problems with payday lenders are also people who have problems with credit cards and other forms of credit. Payday lending is a cheaper alternative to bank fees, re-connect fees, damaging credit scores, etc. 99% of my customers use the service appropriately and find it extremely helpful and practical.

toss | 10:50 a.m. Aug. 16, 2008

Toss the loan sharks back into the sea. Call them what they are: blood suckers!

Banks and CUs are also a rip off | 2:11 p.m. Aug. 16, 2008

Before you come down on loan stores take a good hard look at how much your banks and credit unions charge you for an overdraft or late fee. They are ripping you off just as much if not more. I pointed that out to a bank manager one day. He had not taken the time to realize it. After he took a look at the numbers he agreed there was not difference.

liberal Larry | 5:43 p.m. Aug. 16, 2008

You know you're in a sleazy business when your only defense is "we may be bad, but the banks are worse!"

Anonymous | 10:27 p.m. Aug. 16, 2008

WHY ARE THEIR BUILDINGS SO UGLY????

Liberal Community Activists | 10:01 a.m. Aug. 17, 2008

The only real outcry that you ever read about is from liberal community activists (Crossroads Urban Center backed by RALPH NADER). If consumers had such a problem with these businesses they would elect not to use them. If they were treated so poorly by these businesses word would spread quickly and they would go out of business.

The fact is that payday loans are a cheaper alternative to bounced check and overdraft fees from credit unions and banks (I'll gladly pay $10.00 to borrow $100 instead of bouncing a $100 check and getting charged $34.00 from my band).

Mentally challanged consumer advocates resort to tired and meaningless terms such as "loan sharks" and "Bloodsuckers" to make their arguements. These worthless terms do little in the way of facts.

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