Next Up on the Regulatory Chopping Block...Payday Loans

BigWill said:
So if you are in the miltary and need extra cash by desperate means you can't get any? Awesome..
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There are military assistance organizations and military-oriented credit unions that have taken over.

Pawn shops pretty much took over the niche. CashAmerica is a national company specializing in payday loans/cash advances and pawn shops, and rather than shutting stores in North Carolina due to regulations, they just moved to pawn operations in NC (as well as in Georgia, and some others I believe). In fact, there are tons of thriving pawn shops in these areas - No issues. And if you check out Cash America's stocks, they're doing pretty darn well, too Cash America International, Inc. - Google Finance .
 


nickycakes said:
finally. payday loans destroy peoples lives. i have no idea why they haven't been shut down sooner.
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So do cigarettes, alcohol, gambling, porn, mortgages, saturated fats, etc.....


Not saying i disagree with the fact that they can ruin peoples lives, but the government can't have it both ways. They can't want banks to loan to very poor people (taking on all the risk) and then charge the same interest rate as they do to regular people. Interest rates are charged based on a numbers game. You figure that a pretty big chunk of people who get payday loans never pay them back. So they gotta make up for those by charging high interest to everyone.

But yes, 300% interest rates are tough to swallow. That's why you should't take out a loan with a 300% interest rate in the first place.

I don't know the details, but i'm sure a lot of it is fine print. If they are going to change anything it should be to put it in nice big letters what the interest rate is and what the payment schedule will be for the loan and how much will be paid back over the life of the loan. Then a borrower can make an educated decision and asses the risk.

Final thought: In theory I'm against the idea of charging someone 300% interest. But i'm also against the idea of the government dictating the terms of a loan between two people, provided the terms of the loan are clearly started and understood by both parties.
 
rgordon83 said:
So do cigarettes, alcohol, gambling, porn, mortgages, saturated fats, etc.....
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give the government time - soon these will be taxed to hell and back. They are already talking about regulating SALT and making it the next "trans-fat" and even taxing soda pop.

the nanny state isnt coming - ITS ALREADY FUCKING HERE...
 
nickycakes said:
finally. payday loans destroy peoples lives. i have no idea why they haven't been shut down sooner.
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Yea because those crazy extortionists are holding guns to their heads forcing them to take out loans.

Poor money management is the cause for these people's problems.
 
The problem with payday loans is that they service a segment of the market that is not tied directly into the Federal Reserve system.

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rgordon83 said:
Not saying i disagree with the fact that they can ruin peoples lives, but the government can't have it both ways. They can't want banks to loan to very poor people (taking on all the risk) and then charge the same interest rate as they do to regular people.
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Not exactly germane to the actual thread but how much risk are the banks being asked to take on? Last time the banks ended up with a fuck ton of bad debt they found 310 million suckers to cover the nut.
 
rgordon83 said:
So do cigarettes, alcohol, gambling, porn, mortgages, saturated fats, etc.....


Not saying i disagree with the fact that they can ruin peoples lives, but the government can't have it both ways. They can't want banks to loan to very poor people (taking on all the risk) and then charge the same interest rate as they do to regular people. Interest rates are charged based on a numbers game. You figure that a pretty big chunk of people who get payday loans never pay them back. So they gotta make up for those by charging high interest to everyone.

But yes, 300% interest rates are tough to swallow. That's why you should't take out a loan with a 300% interest rate in the first place.

I don't know the details, but i'm sure a lot of it is fine print. If they are going to change anything it should be to put it in nice big letters what the interest rate is and what the payment schedule will be for the loan and how much will be paid back over the life of the loan. Then a borrower can make an educated decision and asses the risk.

Final thought: In theory I'm against the idea of charging someone 300% interest. But i'm also against the idea of the government dictating the terms of a loan between two people, provided the terms of the loan are clearly started and understood by both parties.
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Payday loans are EXTREMELY misleading, and actually revolve around a misleading business model in order to function.

And what the fuck is porn doing on that list?
 
Amazed it didn't happen way earlier honestly. Fully disclosed interest rates won't matter really though since most people don't understand interest at all.
 
Dont understand why state gambling is legal. Yet Payday loans are the problem.
I say take the log out of your eye, before you go after the twig in mine.
 
nickycakes said:
finally. payday loans destroy peoples lives. i have no idea why they haven't been shut down sooner.
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Have you actually gotten a payday loan before? I did years back just out of high school trying to make rent. You are specifically told of what is due, when it is due, and how much you will be fucked if you don't pay it.

These people know exactly what they are getting into. Online? Maybe not... In person, for sure.
 
I've got a neighbor who, up until the last month or so, operated several payday loan locations in a couple different states.

Last week I found out he sold the businesses.....now I know why, LOL.
 
nickycakes said:
abstinence only education actually increases teen pregnancy and stds, sorry.
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Also increases the likely hood of a quicker, younger marriage and subsequent divorce.

Abstinence is Anti-Family.

edit: holy shit I just realized what a great line that is. I need to trademark it or something.
 
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