I am not a patron of payday lenders and hope I never have to use their services. However, I think that banks and credit unions often charge the same or worse for similar services, except they have a better way of hiding the fees. I was late on a car payment several times to a credit union. I had been a faithful and loyal customer for many years. Yet, I came home one day to find my car had been towed. After paying the fines, towing fees and interest charges, I was out over $1,000. It seems like a payday loan would have been cheaper for me than what the credit union charged to finally release my car. I have also paid outrageous fees on overdraft charges to my bank several times.
I think if the government is going to regulate the payday lenders, it should also take a look at some of the practices of banks, credit unions and other financial service companies.
Salt Lake City