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“Cost-competitive alternative”

September 20, 2010 | Florida, customers, employees | Comments (0)

Lengthy piece by Miami Herald reporter ran on Sunday.  From the story:

Annualized, payday loan interest rates may be as much as 300 percent or higher, drawing the ire of consumer advocates and earning the industry labels including “legalized loan-sharking,” “financial apartheid” and “predatory lending.”

But the cost is up front and transparent, Fulmer said.

Customers “see our product as a cost-competitive alternative. You often hear critics talk about exorbitant annual percentage rates, but you have to look at an apples-to-apples comparison,” Fulmer said. Credit card late fees interest rates and overdraft fees can be far more expensive on an annualized basis, he said.

Exactly.   For many people, a payday loan is the right choice when facing an unexpected expense.   If a pawn loan or credit card is a better choice in a  particular situation, the consumer is the best person to decide that.

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