Comment of the Day
October 3, 2008 | Uncategorized | Comments (0)In response to the posting about the show “Easy Money.”
They share a great scene when Bobette defends the business to Morgan, saying, ‘We HELP people. People that the banks don’t think are good enough, they come to us in their hours of need and we help them.’ That’s followed by her telling the family not to appear too wealthy.”
That’s the basic misconception, I think, which the industry needs to dispel – that because payday loans carry triple-digit interest rates there is a huge mark-up on the product and payday lenders are making out like bandits. The fact, of course, is that about 90% of the fees payday lenders charge go towards covering the expense of issuing the loans plus the loss from those people who default. But the critics, in complaining about 400% interest rates, are trying to make it sound as if there’s a conspiracy among payday lenders to charge 10 or more times what they could be charging for the loans, which is absolutely untrue.
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