Payday Loan Crackdown has its Victims
May 20, 2008 | media coverage | Comments (0)Phillip Morris, Plain Dealer Columnist, writes about a recent conversation (during a Cavaliers game) with his friend Greg, a payday loan customer. Writes Mr. Morris, “Greg is a pretty smart man. He’s been with the federal government for a little more than 22 years. Before the foreclosure crisis, he had dabbled in real estate on the side. He’s always impressed me as having his act together.
What did Greg have to say about the ban on payday lending in Ohio?
“Well, they haven’t abused me. In fact, they’ve saved me money.”
“Im not a mathematician, but I think the payday lending industry is getting a raw deal,” Greg said Sunday afternoon as the clock ticked down on the Cavaliers.
Greg talked about payday loan fees:
“These overdraft charges appear to far exceed the rate of interest that the payday lenders are charging. I paid $101.25 more in fees by not being able to pay $15.75 to take out a small loan from a payday lender.”
The columnist concludes with:
“I’m not a mathematician, either. But I think Greg has an excellent point.”
Some payday lenders have preyed on financial illiterates. But many have also provided short-term financial ladders to people like Greg. Now the ladder is being taken away by politicians who believe they know what’s best.
Payday Pundit wants to thanks Mr. Morris for shining the light on the people who will be most hurt by the ban- customers. In case you want to contact the columnist, he can be reached at pfmorris@plaind.com.
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