Comments on: Comment of the Day http://paydaypundit.org/2008/12/23/comment-of-the-day-51/ News and Information About The Payday Lending Industry Fri, 18 Jun 2010 21:33:31 -0700 http://wordpress.org/?v=2.9 hourly 1 By: Jon Schultz http://paydaypundit.org/2008/12/23/comment-of-the-day-51/comment-page-1/#comment-2746 Jon Schultz Wed, 24 Dec 2008 17:12:09 +0000 http://paydaypundit.org/?p=2166#comment-2746 Well first of all these people are not in debt because of payday lenders. They're in debt because whether by necessity or poor choice they are spending more than they are earning. They are using payday loans to help them manage their debt, and if payday loans weren't available they would be in worse shape, getting evicted, losing their job because they can't get their car repaired, or just paying bounced check fees, credit-card late-payment and overlimit fees, and other fees that would cost considerably more than the fees they are now paying payday lenders. Second, what percentage of Americans have an obesity problem, Arthur, because of the food which food-company sharks and grocer sharks sell them? If your philosophy comes to govern society there will be a limit on the amount of fat ice cream can contain, you will be limited to four quarts per year and you won't be able to go from store to store because your purchases will go into a database, and everytime you go to the grocery store the grocer will check the database to make sure not only that you aren't buying too much unhealthful food but he will also check your income and bank reserves so he can responsibly be sure that you are not purchasing more than you can afford. Yes, change is coming. It's been called 1984 and the Brave New World. Well first of all these people are not in debt because of payday lenders. They’re in debt because whether by necessity or poor choice they are spending more than they are earning. They are using payday loans to help them manage their debt, and if payday loans weren’t available they would be in worse shape, getting evicted, losing their job because they can’t get their car repaired, or just paying bounced check fees, credit-card late-payment and overlimit fees, and other fees that would cost considerably more than the fees they are now paying payday lenders.

Second, what percentage of Americans have an obesity problem, Arthur, because of the food which food-company sharks and grocer sharks sell them? If your philosophy comes to govern society there will be a limit on the amount of fat ice cream can contain, you will be limited to four quarts per year and you won’t be able to go from store to store because your purchases will go into a database, and everytime you go to the grocery store the grocer will check the database to make sure not only that you aren’t buying too much unhealthful food but he will also check your income and bank reserves so he can responsibly be sure that you are not purchasing more than you can afford.

Yes, change is coming. It’s been called 1984 and the Brave New World.

]]> By: Arthur Ham http://paydaypundit.org/2008/12/23/comment-of-the-day-51/comment-page-1/#comment-2744 Arthur Ham Wed, 24 Dec 2008 03:43:04 +0000 http://paydaypundit.org/?p=2166#comment-2744 <i>Nevertheless most people learn to use these things responsibly, if not at the beginning then at least over time as they get bad results from irresponsible use.</i> Let's consult the latest Veritec report for Florida. During the course of the previous fiscal year 28.6% of all customers in the state had 12 or more payday loans. 1 in 9 had 18+ transactions during the year; they accounted for 30% of all transactions. Or let's go to Oklahoma. 16, 998 people in that state during the latest reporting year had 18+ loans. That means they were indebted to high-rate payday lenders for at least 70% of the year. These customers accounted for more than one-third of all transactions recorded in the state. Payday lenders don't have compunctions about extending credit or renewing loans when people are obviously trapped by their debts or misusing the product. They hide behind their free-to-choose ideology, as if the trade in short-term credit was no different than selling loaves of bread. But what works in one market won't necessarily work in others. A one-size-fits-all strategy makes society stupid. Fortunately, a new wind is blowing. Recent events have exposed lenders and the regime of deregulated credit. If I was in the loan-shark business, I would be worried. Nevertheless most people learn to use these things responsibly, if not at the beginning then at least over time as they get bad results from irresponsible use.

Let’s consult the latest Veritec report for Florida. During the course of the previous fiscal year 28.6% of all customers in the state had 12 or more payday loans. 1 in 9 had 18+ transactions during the year; they accounted for 30% of all transactions.

Or let’s go to Oklahoma. 16, 998 people in that state during the latest reporting year had 18+ loans. That means they were indebted to high-rate payday lenders for at least 70% of the year. These customers accounted for more than one-third of all transactions recorded in the state.

Payday lenders don’t have compunctions about extending credit or renewing loans when people are obviously trapped by their debts or misusing the product. They hide behind their free-to-choose ideology, as if the trade in short-term credit was no different than selling loaves of bread. But what works in one market won’t necessarily work in others. A one-size-fits-all strategy makes society stupid.

Fortunately, a new wind is blowing. Recent events have exposed lenders and the regime of deregulated credit. If I was in the loan-shark business, I would be worried.

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