Comment of the Day
December 2, 2008 | Uncategorized | Comments (2)Don’t these writers realize that putting the 36% cap for military people now means that no active military personnel can take a payday loan. No one will lend to them.
Wherever 36% caps have been put into place, loans have ceased. Doesn’t anyone realize that $100 at 36% is $3 per month of interest? You cannot make a profit on that. Didn’t some credit union come up with $9.90 per $100 (for two weeks) was only enough to break even????
The writers who criticize the industry are ignorant. It is really frustrating that these people are incorrectly informing the public. Are they in the banks/credit unions pockets? It seems that payday lenders are bad, but banks and credit unions are good……how is that? Doesn’t anyone realize that the banks and credit unions are lobbying to eliminate payday lenders so that they can collect more in fees (and at higher rates)??????
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Payday loan critics can’t seem to look past the APR. On a short term, non-compounding loan it’s nonsense, and credit unions can charge fees but not include them in the APR while payday lenders cannot. But the truth doesn’t make interesting headlines… the high APR does.
Until the APR’s are reported on all financial fees such as ATM fees, late charges, etc. the criticism will continue.
Or – a miracle may occur and reporters will actually research what they are printing. Nah.
The military 36% apr was attached to a military spending bill. Everyone acts like it was some great piece of legislation. Where are the facts?