Comments on: Borrowers know the terms and still take out payday loans http://paydaypundit.org/2008/08/28/borrowers-know-the-terms-and-still-take-out-payday-loans/ News and Information About The Payday Lending Industry Fri, 11 Jun 2010 22:59:45 -0700 http://wordpress.org/?v=2.9 hourly 1 By: Aurther's critic http://paydaypundit.org/2008/08/28/borrowers-know-the-terms-and-still-take-out-payday-loans/comment-page-1/#comment-1344 Aurther's critic Sat, 30 Aug 2008 17:08:55 +0000 http://paydaypundit.org/?p=1334#comment-1344 Aurther, They do know the terms, its $15 for every $100 borrowed. They know and understand what they have to pay back . At least at the company where i work , we point out the APR twice and tell them what it is one more time. Its not hidden. Saying that they dont understand the terms because they dont know the APR is like saying that I dont understand a big mack is fattening because I dont know how many grams of fat. Aurther,

They do know the terms, its $15 for every $100 borrowed. They know and understand what they have to pay back . At least at the company where i work , we point out the APR twice and tell them what it is one more time. Its not hidden.

Saying that they dont understand the terms because they dont know the APR is like saying that I dont understand a big mack is fattening because I dont know how many grams of fat.

]]> By: Arthur Ham http://paydaypundit.org/2008/08/28/borrowers-know-the-terms-and-still-take-out-payday-loans/comment-page-1/#comment-1318 Arthur Ham Thu, 28 Aug 2008 23:55:12 +0000 http://paydaypundit.org/?p=1334#comment-1318 <i>Borrowers know the terms and still take out payday loans.</i> This is true, though a CFSA sponsored study by Georgetown University showed that most customers can't recall the APR of their last transaction. But that's because they don't care. Long before payday lending came on the scene we have known that rationed borrowers are insensitive to the APR of their debts. If so, payday pundits should more enthusiastically embrace the APR because it is no threat to your business. You disclose the APR, hence you are doing your part to help consumers comparison shop. Borrowers know the terms and still take out payday loans.

This is true, though a CFSA sponsored study by Georgetown University showed that most customers can’t recall the APR of their last transaction. But that’s because they don’t care. Long before payday lending came on the scene we have known that rationed borrowers are insensitive to the APR of their debts.

If so, payday pundits should more enthusiastically embrace the APR because it is no threat to your business. You disclose the APR, hence you are doing your part to help consumers comparison shop.

]]>