Ohio’s “Center for Moral Clarity” on payday lending
May 27, 2008 | industry critics | Comments (1)On one hand, they encouraged the banning of payday lending in Ohio. On the other, they say, “It’s inarguable that there are consumers who can use the payday lending industry’s services responsibly, just are there are people who can take a drink now and then without descending into alcoholism.”
Using that logic, wouldn’t it make more sense to help those who use the product irresponsibly instead of banning it for all?
If you have a comment for the Center for Moral Clarity (headquartered in Columbus, OH), you can email them at .
Comments»
Congratulations to all you state legislators who voted to ban regulated payday loans. This is what you have forced your constituents to turn to. In addition, you have added to your state’s unemployment ranks. Good job. There is nothing like feel good legislation, no matter the consequences.
A warning tonight for all consumers considering internet loans on the Web. Over the past few months, we have reported several stories warning about the dangers of Payday Loans and Car Title Loans. Now with tough economic times, many consumers are getting trapped by online web loans that can charge up to 2-thousand percent interest rates. The Consumer Federation of America reports that a typical internet web loan often costs $30-dollars for each $100 borrowed.
It cites an internet payday loan for $183, that carried a 573-percent interest rate, leaving the consumer with a $557 debt one-month later. What’s more, payment is electronically drafted from the borrower’s checking account which is usually drained dry. Consumer advocates say web loans are becoming more widespread as local governments restrict payday and car title loan storefronts.