Posted on 03/10/2014 5:35:28 AM PDT by Kaslin
I’m not sure exactly what the current administration’s biggest bugaboo is with this industry, but they sure seem hellbent on destroying it.
Their hatred is probably race-based. Most of those who use payday lenders are black, and the next biggest group are hispanic.
I lost a great job providing data analysis for this industry, and it’ll be a while in forgiving them and those who voted for them because of it.
Funny thing, these “payday loans” ...
The Mafia made pretty goodd money from what was then called “loan sharking” their customers.
And now, the Fed’s (democrats all) want to do the same thing....
Only a liberal airhead would think a half baked idea like this would work.
Let’s get the government into lending. It has worked so well with the student loan program.
She must be a self-loathing faux Indian.
I actually listened to an interview with a guy that worked at a management level within a payday loan company. It was interesting to see his perspective, and I tend to agree with it. They are a bit like a bail bondsman in that what they do is risky and so they charge a lot to make up for the bad risks. Kinda like items in a chain store location in a “bad” neighborhood are more expensive than in fancy neighborhoods because of all the shoplifting.
But they offer a service that does help some people. It also proves the point of a phrase I coined a few years ago: It is very expensive to be poor in the US.
But nationalize them? That is absurd.
The worse thing a payday lender could do was turn someone over to collections, which they could ignore with impunity.
The mafia would break their knees.
One of the things I heard postulated is that the payday customers were people with jobs (a requirement to get the loan) who needed some cash to get through a short time,
and the left wanted them to turn to the government instead of a lender, in order to get them hooked on entitlements.
Payday loans are just a way to get around laws against obscene amounts of interest. You are basically passing laws to protect people from their own stupidity.
By the way - what would you charge in interest to a customer base with a demonstrable 35% default rate?
Ping to link at 11.
Sowell’s with you.
I wouldn’t lend money to them. Duh.
Another angle on this: Off the grid anonymity is offered by these places.
I used a “prepper” type guy who had a “fathers advocacy” legal firm to get custody of my youngest daughter. GREAT service and cost me less than a thousand bucks. But one of the checks I wrote him bounced and I got a call from a payday loan place next to SeaTac airport. This is interesting because his business was 30 miles north of there.
It turns out his is a very interesting story. It goes like this:
He has no checking account and no credit cards but makes good money. He owns his own small office building. He takes payment only in cash and checks. But he has a deal with the payday loans place to be sort of his bank for cashing all his checks and he gets a significant reduction in their standard rate for this. He simply takes all the checks people like me pay him and turns them into cash there.
And it is by the airport for a myriad of reasons, not least of which is the travelling he does.
Talk about off the financial grid. And I leave you to meditate on the benefits and disadvantages of such a thing. It’s quite a fascinating mental exercise.
BTW, this was in the late 90’s. I’m sure the cash thing is more difficult since 9/11. In fact, it almost makes one want to consider being a truther. Almost.
Thus removing an option for them, as Sowell states.
They usually don’t NEED the option. They just can’t manage money. The payday option just worsens the problem.
Claim to be an Indian to further your career, and then screw the Indians. Now, she’ll blame the Republicans. The liberal ideology is this.....”Money makes the world go ‘round!”
We used to be bombarded with commercials from some Indian outfit called Western Sky, which charged 3 and 4 digit interest rates for their loans. I’m not a fan of Warren but if she can put outfits like that out of business then more power to her.
The payday option just worsens the problem.
But it’s none of our business (or the government’s) unless they are not adult citizens. “They” have the same rights to privacy and to make both good and bad decisions as us “non-poor” people. And to be frank, a lot of it is that they are young and learn a valuable lesson from the experience of paying for their money, to eventually become responsible adults.
The mafia changed less than these Indian tribe sites.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.