Ohioans for “individual responsibility”
July 30, 2008 | alternatives, industry, personal finance | Comments (4)It would have been nice to hear more of this during the payday lending fight in Ohio, but we’re pleased nonetheless with this Chillicothe Gazette story. In discussing the current economic situation, the editorial page editors write:
Also to blame are those Americans who may have been unrealistic, turned a blind eye or overestimated their own personal financial situation when applying for such tools as mortgages and adjustable rate loans or multiple credit cards. When the rates adjusted, disaster struck.
Payday lenders offer consumers a financial choice that is largely beneficial to the vast majority of customers. Yet the media continues to trot out rare examples of customers who misused the service or shouldn’t have sought a payday loan in the first place. Yes, “individual responsibility” is important.
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The CBS report on payday lending was a much better piece. We hear all day and night about personal responsibility from the payday lenders at the same time as they expect to be absolved of responsibility themselves. Let me give the payday lending industry another lesson on predatory lending. “A predatory loan has one or more of the following features: 1) charges more in interest and fees than is required to cover the added risk of lending to borrowers with credit imperfections, 2) contains abusive terms and conditions that trap borrowers and lead to increased indebtedness, 3) does not take into account the borrower’s ability to repay the loan, and 4) often violates fair lending laws by targeting women, minorities and communities of color. (Squires, 2004)” Payday lenders need to own up to the fact that they are peddling a bad product that hurts those that utilize it. The fact is that most who use payday loans shouldn’t ever use them in the first place. The woman in the CBS piece said she’s rather have the electricity shut off than go back to a payday lender. That’s saying something!
The fact is, John, that you don’t read or ignore the rebuttals to your invalid points which are made here, and just keep repeating them over and over. Please see the testimony of Professor Tom Lehman to the Ohio General Assembly, which the Pundit linked to yesterday:
http://www.buckeyeinstitute.org/article/1128
You tell us where he is wrong.
I guess the question I have for John is how would this lady have paid for her car to begin with?Your comment on interest and fees to cover added risk from people with credit imperfections is silly.If you lent 100.00 in hopes to make 15.00 profit and the person didnt pay you back does that 15.00 cover the risk?contains abusive terms?EXAMPLE PLEASE??? Conditions that trap borrowers?Two week loans set up to fall on a persons payday?Bars trap people into drinking ,church traps people,into praying,Mcdonalds traps people into eating.hmmm I see now.Doesnt take into account the customers ability to repay the loan …NOW THAT MAKES SENSE .If they cant pay us back then how are we gonna make money ?Thats just dumb.Often violates fair lending laws by targeting women,minorities and commuities of color.We offer loans to everyone regaurdless of race or gender,and several payday loan store owners are of color or woman.You also state we are peddling a bad product that hurts those that use it?96% of payday loan customers consider it a valuable service.accourding to a study done by cypress research group in 2006.People who have a big problem with payday loans are people who dont use the product responsibly,or make a living and in some cases a six figure salary defending those who are smart enough to pay taxes but not smart enough to decide if a payday loan is right for them.
good point, unfortunantly “John” is so confused by his “facts” that he is telling everyone that we loan and “prey” on the military.