Payday lending boom in Vernal
October 1, 2008 | Utah, industry, local issues, media coverage, states | Comments (0)Vernal is a town in Utah. (what a great name!) From the story:
With nearly a half dozen new lenders in Vernal specializing in short-term, small loans, title loans and/or collateral loans, many residents are exploring these alternative lenders to help pay for unexpected expenses, increased expenses, and holes in the monthly family budget.
Cynthia Shiner, store manager at Star Loans, 25 S. Vernal Avenue, which opened in August, said she sees a variety of people, from all economic classes, who apply for small collateral loans. Collateral loans can range from $100 to $800 and are secured with household items such as electronic equipment. The loans typically carry a higher interest rate, and are paid back in monthly payments up to 10 months.
“A lot of people can’t get a small loan from their bank,” says Shiner. “We serve a lot of people who have good incomes, but get into a bind. Gas prices have almost doubled, and coming up with money for rent or a deposit on a newapartment can strap them.”
After all the beating up of reporters the Payday Pundit has done, we want to applaud Tabatha Deans at the Vernal Express for writing a straightforward, accurate story.
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