Comments on: “I can make decisions for myself.”

By: Jon Schultz

Jon Schultz — Fri, 07 Nov 2008 03:39:00 +0000

Why do you call it the “same $300″? Seven times a year averages almost two months between loans. This could be seven times a year that the guy was saved from EVICTION, for just $45 each time (with the lender risking $300 each time to earn his approximate $4 or $5 in profit). Or seven times a year that he SAVED MONEY by not having to bounce checks and pay late fees of various kinds. Why do you “consumer activists” insist on distorting the reality of the situation? Nobody denies that some payday loan customers overuse the service and get themselves into a bind (just as a fair percentage of people overuse every good thing to bad effect), but customer satisfaction surveys have shown that an overwhelming majority of people who have used payday loans consider them to be a useful financial tool. See http://www.cfsa.net/get_the_facts.html

That is the most important statistic, which you people keep ignoring.

By: Chris F

Chris F — Thu, 06 Nov 2008 22:27:10 +0000

If he goes to am ATM out of his network, he gets the privlege of paying approximately $5 to access his OWN money!

I know Jeff, what is the difference? This “privlege” that you mention is a cost associated with receiving a service. Do you complain when you go to the local fast food restaurant and pay between $1.50 and $2.00 for a pop that has a real cost of about 3 cents? Based on the intellect that you have shown here lately, I would say not. You know the price and made the conscious decision to pay 1000’s of times the real cost for the pop. Your agenda can be twisted to any product or service on the market. The issue here is that people, like you, that have never used the service, let alone stepped foot in a PDL store made a decision for the people that demand and used the service.

It would be like the residents of Idaho making regulatory decisions for the residents of Ohio. Most of them have never been there, but they know what you want and need!

By: Chris

Chris — Thu, 06 Nov 2008 21:36:14 +0000

why is he borrowing 300 for a year? a payday loan is a short term solution using it long term is the fault of somebody that doesn’t know how to save money. How is it the payday lenders fault that some person doesn’t know how to save money?

By: Jeff

Jeff — Thu, 06 Nov 2008 21:33:31 +0000

So let’s do the math. This guy used payday loans 7 times a year. Let’s say he borrowed $300 each time, which we all agree is about the typical amount. He paid $45 each time he borrowed the same $300. That means, in one year, he’s paid $315 for the “privilege” of borrowing and re-borrowing the same $300. How is this not loan sharking?

By: j.d.

j.d. — Thu, 06 Nov 2008 17:17:04 +0000

If the credit Unions offer such a great product. Then why would a vast amount of my customers bank and have checking acounts through credit unions and get payday loans from me.

By: Neal

Neal — Thu, 06 Nov 2008 16:49:51 +0000

or…we could go to a credit union and pay 28% APR or less to borrow the money, getting a better “bang for his buck.” Or he could set up an emergency account by meeting with a credit counselor who can help streamline his budget.

This sounds like the exact person who is very close to making it and the interest from payday loans is not helping him.