Payday Loan Companies are Scum

[jmjj215]

In light of the recent article postings about payday loans, I just wanted to mention my feelings about them.

Charging "400-800%" on a loan is the equivalent to robbery. Anyone who preys on the poor to make a profit is scum. These people take advantage of those in need so they can line their own pockets. They are low-life losers. Instead of trying to make a buck abusing the poor, why don't they try and make a buck by helping the poor instead? They are crooks. Anyone who promotes such practices (either directly or indirectly) is helping these crooks stay in business.

Of course, here in this forum, I'm certainly preaching to the choir. I just thought I'd share my opinion about the scum that are payday loan companies.

[DivaJen]

Payday loans start a very vicious cycle. I'm amazed that they're legal, given the interest they charge.

[DivaJen]

I'd save your comments, everyone, for this thread rather than other threads posted here. Posting to them brings them back to the top and the front of the message boards. Let's let them ride down until Jeffrey deletes them, if he is going to.

[jeffrey]

Oh, yes, Jeffrey does a lot of deleting these days It seems as the forums become more popular, the more of that type of stuff we get. If you see something like that in the future and want to comment, start a new thread since anything with links from new members will be deleted (our rules are they need to have 15 posts before they can list links to other sites) - I hate deleting comments, but refuse to let the people spam the site too - we certainly don't want spam in ever other post here. If any of the regulars are interested in moderating, send me a private message or <A HREF="mailto:info@savingadvice.com">email me</A>.

[jmjj215]

Jeffrey and Diva, in the heat of the moment, I forgot to let that debt post just slide on down w/o responding to it. It was early I'm glad you let it stay though.

Also, Jeffrey, I think you guys do a great job of keeping spam off. Really.

[mom-from-missouri]

I think they are also scary. Used to have co-workers who used them. I worked nights then, and it was not uncommon for those places to come to our workplace and bang on the door at 2 a.m. yelling that they wanted their money and giving out threats. Numerous times we called the cops. Needless to say, I work for a major major telecommunications company with a security department that works round the clock. Finally my company ended up putting a restraining order against the payday loan places to prevent them from coming on to company property. We could see these guys on the monitor thru the security camera on the door and needless to say they were...UGLY dirty mean looking types.
On the flip side, we do have one place in town that is owned and operated by a christian family, charges a much much lower interest fee, works with people, and will even give people who are really out of luck excess produce from their farm, diapers and clothing. The local paper did a write up about them after they helped a family with no insurance who lost everything in a fire-they gave the people a loan, then when found out they had no address from the fire, paid for a hotel & meals for them for a week out of their own pockets until the red cross could find them housing. Quite the opposite don't you think?? So, I guess its just a matter of principals and values.

[Lori63]

My 16 year old is my payday loan company, and he doesn't charge interest.

[BAGAGT1]

Originally Posted by DivaJen

Payday loans start a very vicious cycle. I'm amazed that they're legal, given the interest they charge.

I remember a few years ago, that the city of Chicago was looking into the legality of these places, as they were nothing but unregulated banks. I don't remember if anything ever came of that investigation.

[jhd815]

I live in Illinois and have never used them. However, our attorney general and state legislators have enacted new laws regarding payday loan companies. Among the new provisions are:

"a fee cap to reduce the cost of using payday loans, an industry wide cap on borrowing to prevent over borrowing, a recovery period to break the cycle of debt created by back-to-back loans, a repayment plan to help borrowers in over their head make good on their debts, special protections for military personnel, and a statewide consumer reporting service for enforcement."

More states need to regulate the payday loan industry

[jmjj215]

The thing is, that legislation (while definitely good) still misses the mark. People need to be educated about debt - not just given a lower interest rate or strung along for a longer repayment plan so they can afford their monthly. I wish some curriculum could be placed in high schools

[34saving]

. . . Hmmm . . . . I bet we have the resources right on this board to write a nice curriculum . . . Does anybody know if such a (good) curriculum already exists? Something like that might also find a niche among those who are home educating their children. As for what's already taught in HS, of course it varies all over the place, but most of what I've seen in very techinical and not very practical.

[mom-from-missouri]

Our local school used to have such curriculum. I took it in 7th grade. It was "budgeting", and met the math requirements. We had to take it in either 7th, 8th, or 9th grade-just like the Missouri constitutation test. It lasted 1 semester. We learned to balance a checkbook and took a tour of the bank. We learned about credit cards and interest rates. We toured a new home on the market, and learned about getting a mortgage vs renting. We drew cards that told our occupation and wages, then we got married and had children. Those cards we had to draw. Then it was our option to draw or not to draw the cards that had the fancy stuff-motorcycle, boat, big house....Then, we had to figure our budget based on our finances from the cards we drew and learn where to cut our expenses. We had to budget for utilities, bills, groceries, shoes, clothing, insurance all of it. We did this at the beginning of the semester. At the end of the semester, we had to see who had what in the bank, who owed the bank, who had their bills paid, who was going bankrupt...was real interesting. The class had a display--program set up where our parents could come see our projects and checkbooks at the end of the class. I think a lot of parents learned from it also.

[cicy33]

No matter how much learning kids do in school it is not real for them until they start making money. My daughter had been a part of learning a budget from the time she was 5 and asking for things that we could not afford. I sat her down and showed her the money coming in and the bills going out from age 5 and on. Yet, when she got her first job the first thing that freaked her out was taxes. She couldn't believe they took so much from her paycheck and then learning about car payments and credit cards. I remember the first time she bounced a check (also only time!) she didn't understand that the balance the bank said was not always correct. I didn't realize that she needed to learn certain things, I just assumed she understood it from watching me. I was so open and showing with the budget. She learned the hard way to be very careful. Now, she has two jobs so that she can get her credit card fully paid off, pay on her truck and have a little in the bank and she is only 19. I am really proud of her. But, please do not assume your kids "get it". They don't. Not until it hits them where it hurts.

[Tree0164]

I think that schools can do a better job in giving kids an understanding on how money works and how to stay out of debt. Of course if they do not see it at all at home, it probably not going to sink in.

Money doesn't grow on tree and many kids do not understand this concept and as a result they take out the plastic all the time.

[jmjj215]

The ultimate responsibility for educating our kids should be carried on the shoulders of the parents. They can do it best (not saying they do).

[cicy33]

I don't think that the school system today is even close to teaching the things our kids need. They are overcrowded and teachers are just trying to get through the day. Money is a hard concept for adults much less kids. balancing a check book is hard for most smart people, can you imagine what it is like for an 18 year old who can finally spend their money the way they want to!! I personally hate to balance my checkbook.

[jmjj215]

I haven't balanced my checkebook since I married (February 2003). There are other, simpler ways of managing money.

[34saving]

I'm glad I'm not the only one who stopped balancing the checkbook once I got married! I have a feeling our "simpler" methods are probably a bit different though