Comments about ‘Payday lenders protest potential rate cap’

No one forces people to go into these locations to get loans. Interest rates are posted for all to see (and then leave if they wish without a loan). Government can regulate this business until it is gone, then it will simply go underground / black market because demand will remain. These lenders take substantial risks and usually for a short time. They don't make loans for a year, so the annual rate is somewhat misleading. Overall, get government out of trying to regulate profit without accounting for the associated risks (in this and any industy). Even studies by the NY Fed validate the claims made by this Gibson person.

These companies prey on the poor and desperate individuals who have nowhere else to turn. They're REAL NICE when you're borrowing money, but if you can't make the payment, you're off to court with an even bigger payment.

If you can't make money loaning $ at 100% interest, then you SHOULD be put out of business!

AGREED!

used to be illegal. A new name makes it acceptable? I think not. Stiff regulation is needed.

I agree about the loan sharking but unfortunately the banks have some responsibility too. I have never had a bank fee in my life but if you convert those fees to interest they are off the charts. If banks were a little less greedy there wouldn't be nearly as many payday stores. The banks are really not as different as you might think.

To "Observer". Would you loan a relatively unknown person $100 for a week for only $1.92, because that's the proposed 100% annual interest.

You say the company is no longer nice when you can't pay back the loan you AGREED to pay back.

How about we try personal responsibility for a change instead of regulation. Don't take out a loan you can't pay back. Don't buy a house you can't afford. Don't live beyond your means. If you do, word to the wise, it's YOUR fault, not the fault of whoever gave you the money. Maybe if we as a society could learn that little lesson we wouldn't be having the economic pain we are now.

Predatory and misleading lending practices are in a different boat - they should be stopped and prosecuted. But a (legal) payday loan is clearly defined what your obligations are.

A loanshark off the street is cheaper to borrow from than these payday lenders. They prey on the poor and low income people because these same borrowers do not qualify for conventional bank loans.

Don't be fooled by their fee claims either. They do attach late fees, costs, and interest to any overdue payment.

Another means to control them is to force them out of the small claims courts and use the civil courts to try and recoup losses from bad loans. Payday loans and lenders are a very high risk business that works outside of financial laws of lending. They need to be included as a lending institution just as banks and credit unions. Their court claims assume the posture and rights of bank lending so they should be included in bank lending laws.

Payday lenders perpetrated and enticed borrowers in to this risk game so they should also bear the burden of responsible lending.

I do have to agree with capping banks, mortgage, and credit card fees as they border on criminal that is used as an incentive to swindle and cheat consumers too. Especially when they start lumping many fees for a single late payment.

I have never used payday loan because I know better. I agreed that yearly interest rate is mis-leading. Businesses should be allowed to make money for their services but lawmakers must look at this issue in context, not some yearly percentrate that make no sense.

Arkansas got rid of the payday lender over a period of about one year. It can be done if there is the will to do it.

I keep wondering how the micro-lending and micro-financing that work in the third world could be applied to this situation.

More personal regulation and less regulation handed down by the government is what is called for here.

These lenders are predators and are on the fringe of business society. However, I am getting sick and tired of us bringing government into everything in our lives. We are giving away our freedom and liberty. Regulation of pay day lenders won't affect me or my business in any way, regulations related to this may affect me in the future and I will then be powerless. Any legislation that affects one business may affect another in the future.

To "Misleading"...don't mislead others with your poor math...If you read the article, Payday loans can charge only charge interest for 12 weeks so on $100 that would be $8.50 per week which is much more than $1.92 per week. At a $1.92 per week on $100 dollars for 52 weeks would be 100% for the year, Payday Loan companies would be out of business. The article talked about getting a 100% return in 8 weeks and that would equate to 650% interest. Basic math classes may help you.

Pay day loans are really no different than the so-called regulated banking industry! You could put them all in sack and shake it, then draw a few out and you wouldn't know the difference between them. Thieves, liars, cheats that all claim to provide a service for we the citizen. What a laugh. Just study the BIG banking systems, then filter on down to these weasels in the pawn shops and pay day loan businesses. There isn't a nickels worth of difference in how they operate! Re-regulate all of them! NOW.

illegal???

No one forces you to buy the drugs.

How about a little personal responsibility? Let's legalize the selling of drugs.

The Salt Lake City Council is being too kind to these thieves. What they should have done is put them completely out of business. What they are doing amounts to illegal usury. Get rid of their stench from out state and maybe people can really start to manage their money in a productive way.

Most Utah advocate Utah government protecting citizens from gambling. Then you are against the government protections against loan sharks. What your moral compass here? How do you decide? Gambling is a business like loan sharking. Both take money from uneducated poor people that would be put to better use paying rent or buying food for the kids. Both create crime when people loose too much money. Why are the groups in Utah that are against gaming makes a stand against usury? There is even a biblical prohibition on usury. The Bible evolved about usury, but not gays?

417% interest! What kind of moron would agree to those types of loan terms? My personal cap is 5%.

What the difference between these swindlers, and the rest of Corporate banking?

[nothing]

These loans prey on people on Social Security. Some of these lenders have found ways to seize Social Security checks as well.
Payday lenders are clogging up the small claims system. They polute neighborhoods with too many Payday loan shops. They must be regulated!
Next, do something about the out of control credit card lenders that are raising rates to out of control heights.
These loans are ruining our economy and our prospect of a financially secure America!