“Payday Loans: They’re not Usury”
July 3, 2008 | Alabama, positive media coverage | Comments (0)Lawrence Myers debunks allegations of usury in today’s Anniston Star.
“Excessive” is defined as “greatly exceeding bounds of reason or moderation.” We must ask, what is “reasonable” means in the world of short-term unsecured credit?
If a lender charges a price he deems reasonable that the borrower thinks is unreasonable, the borrower will not take out the loan… It’s called “pricing oneself out of the market.”
Therefore, the interest rate is reasonable, and therefore not excessive. Since the rate is neither excessive nor illegal, therefore the rate is not usurious.
End of story. Usury charge debunked.
“Unfair” “Pathetic” “Not ethical”
July 2, 2008 | Alabama, media coverage | Comments (0)Those are just a few of the comments readers made in response to the week-long series on payday lending in the Aniston (AL) Star: Our favorite:
The Star’s editorial is a pathetic attempt to equate a legal, state-licensed financial service with sin, and its efforts to disguise opinion as fact are deceitful.
Ouch.
Center for Responsible Lending’s tried and true formula
July 1, 2008 | Alabama, industry critics, media coverage | Comments (0)Find a local activist, help him or her draft a letter to a local paper using the same tired rhetoric against payday lending. Single out a legislator who doesn’t share your views and attack him or her in the letter.
These letters always ring a false note because they are typically written by Center for Responsible Lending but signed by local citizens who would otherwise have of no knowledge or interest in the issue at all. In this case, it’s a physician who happens to spew CRL talking points.
Here’s a typical line from this “concerned citizen” (fed to them by CRL) that shows up in letters all over the country.:
Yet statistics from the Center for Responsible Lending (and common sense) indicate that the majority of their profits come from repeat borrowers who are unable to repay the loans. These victims are then forced to extend their loans again and again at great expense.
The Payday Pundit is surprised that a doctor would let himself be used like this.
Alabaman payday lender gets heard…finally
June 29, 2008 | Alabama, media coverage | Comments (0)After suffering through six anti-payday lending screeds in the Aniston Star newspaper (we only posted one because they all seemed redundant), the payday lending industry is finally heard:
The writers of this series have talked about moral obligations, and our moral obligation is to stand up for the thousands of hard-working Alabamians who choose to use our services. We are committed to treating them with respect and to protecting their right to govern their own lives — a right they’ve earned as Alabamians and Americans.
Why can’t reporters get it right?
June 28, 2008 | Alabama, media coverage | Comments (0)Where to begin with this story out of Alabama? First, the story is supposedly about payday lenders and the first person the paper quotes is a title lender. Second, the story repeats the Center for Responsible Lending’s lies about the average customer. On the other hand, the reporter did present this side of the story:
Payday advance loans can be a valuable way to manage an emergency. But if the borrower is not careful, quick loans like these can create a cycle of debt that is difficult to break. In hectic times especially, it is important to make good choices for managing and paying debt.
“We got $200, and only have to pay back $220 in two weeks,” said Timmy Brigner, a customer at Advance America, another payday loan business. “Gotta pay the bills.”
The Payday Pundit appreciates this reporter’s attempt at balance, but thinks he should have learned more about the industry by calling CFSA before writing the piece.
“The Politics of APR”
June 26, 2008 | Alabama, alternatives, industry | Comments (0)Over at paydayfacts.org, they discuss the “politics of APR” and take on the Aniston Star, the Alabama paper doing a series on payday lending this week.
Alabama customers speak out
June 25, 2008 | Alabama, customers | Comments (0)Borrow Smart Alabama website now features customer testimonials…
Listen as our customers tell you in their own words about the services we provide. Along with us, they are often portrayed in quite a negative light. Nothing could be more untrue. Our customers are people from all walks of life who have used our services wisely. They are not people who are unable to make wise choices, preyed upon because they are poor, less intelligent or otherwise unable to make sound decisions. To the contrary. Listen for yourself! As you listen, one thing becomes very clear. Our customers make wise, logical choices and sincerely appreciate the service we provide. If this service was not available where would they turn? We greatly value our customers, their confidence in us and their friendship.
Alabamans are “stupid”
June 24, 2008 | Alabama, media coverage | Comments (1)At least according to one reader of the Aniston Star story posted below. Paydayfacts.org has some sarcastic commentary on it. The Payday Pundit thinks its funny that even in Aniston, Alabama there are elitists who think people are stupid for not making the same decisions they do.
Not much to write about in Alabama
June 24, 2008 | Alabama, media coverage | Comments (0)Otherwise, why would the Aniston Star be devoting a whole week to writing editorials about the payday lending industry? The good news is that the paper has offered the industry one guest article to respond to the paper’s five negative ones. In journalism, they call that “balance.”
The editorial itself is the usual collection of anecdotes bolstered by spin from the Center for Responsible Lending.
Great retort to our Bible-invoking editorial friends
June 23, 2008 | Alabama, alternatives | Comments (0)This story from the Anniston (Alabama) Star discussed below, received this decidedly unspiritual comment from a local reader of the newspaper:
Annual percent rates? Its a 2 week loan. I dont even understand the math you are using? I thought the charge was $15 or so per $100. Thats 15%…not 400%. This is a crazy debate. 2 adults ought to be able to enter into a transaction if they are both willing….editors you dont get to decide.
