More a noose than a lifeline.
So....I’m just spitballing here but I’m guessing George Leef got an extra envelope in his paycheck to write something about how it’s okay to f@ck some poor sap out of 500% interest so he can bail out a $100 payment due.
Go eff yourself George.
Leftism: eliminating poverty by making it illegal.
I’m guessing the banks are behind it, so they can make more friendly $5,000 bank loans and really trap the poor.
You are misrepresenting “Payday Loans”.
Interest rates are 300%-499%. The payout can double in a few weeks.
The proprietors then try to convert them to “title Loans” where the pledged autos can then be repossessed and resold.
These types of loan traps the ignorant and leaves them despondent and broke.
Loan sharks can be a lifeline for the poor too. Hell, if loan sharks had the legal means to automatically deduct 500% interest from your paycheck and other income sources, they wouldn’t need to break legs and knock heads.
Usury is immoral
I’ve never seen someone speaking in favor of payday loans and their several thousand percent interest rates before.
Are they freaking serious? These loans come with interest rates that would make even Ebeneezer Scrooge blush.
They’re not even legal in NY.
Mafia loan sharks may offer better terms. And they don’t use police to enforce collection.
The interest rate is commensurate with the risk. The borrowers are in a bad spot because of their own bad choices.
No they aren’t. They’re a trap. Maybe if they did reasonable fees, but they don’t. Their entire business model is to get you into the cycle, they don’t want you to be able to afford to pay off the loan, so you instead have to pay the rollover fee, week, after week, after week.
Some lifeline - it helps those who make bad financial decisions to keep making them while getting deeper into debt.
Banks won’t touch these borrowers...so what’s a poor man to do?
I suspect nearly all payday loan establishments began as money laundering houses for drug cartels. In Reno, most are staffed with Mexicans. Before these businesses began, they had to get appropriate laws passed in state legislatures in order to charge the extreme usury rates, meaning a lot of politicians were paid a lot of money under the table to get it done. The result became a flood of bankruptcies because once the poor utilize these businesses as a rope of last result, they find themselves hung by it.
Make all the snide remarks you want about how they should know better, once-upo-a-time in this country, usury would get a person tarred and feathered or shunned from their church and community. It is a very bad thing in the Bible to take advantage of the poor.
A big part of the problem is the financial ignorance of most people. This stuff used to be taught in school and reinforced at home. Not anymore.
Another racket is the “Rent to Own” places where if you add up all the payments, you end up buying a $ 500 washing machine for $1100.
I have mixed feelings on payday lenders. They are a lifeline for some folks who have a short-term need for an emergency but the folks taking these loans are not known for their financial prowess.
Also as someone who leans toward libertarian ans state’s rights, I think the Feds should stay out of it.
The CFPB is a terrible government agency. They are “self funding” meaning they use extortion to get lenders to settle on fines for perceived violations to fund their salaries. It is amazing how many “violations” they find to keep themselves in business.
I fix the refrigerator myself.