PBS Oklahoma affiliate’s ONR examined the price of payday loans in the state with the following broadcast segment that aired earlier this week. In the story, Lis Exon talks to Oklahomans about their use of the product, how often it’s used, and why O

K consumers are choosing to use it over its “traditional” alternative.

Though the cost is more expensive than a credit card, 13 percent of Oklahomans have used a loan store in the last five years. Not only has the product become more mainstream, but Oklahomans don’t always have access to credit cards (due to credit ratings or lack of access), and prefer a payday loan for its convenience, reliability, and upfront disclosures.

When asked why she would choose a payday loan over a credit card, Billie Adams, an OK payday loan customer said: “This I can control if I need it for a week, if I need it for two weeks. I can take control and pay it back.”

And how do complaints stack up against storefront payday lenders in Oklahoma? Well, they’re virtually nonexistent. According to Rick Brinkley of the Tulsa Better Business Bureau, in the last three years, only complaints about some online payday loan companies have skyrocketed. “We’ve seen nearly 3,000 complaints on tribal payday loan companies,” he said. “We have seen one complaint, I believe, on a traditional payday loan company.”

“I would personally prefer to have storefront payday loan companies in the state, with restrictive laws that are pretty limiting to what a consumer can get. Cause if we do away with payday loan companies in this state, we are literally pushing the poor to these websites where they will be—in my opinion—taken advantage of,” Brinkley said.

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PBS Oklahoma affiliate’s ONR examined the price of payday loans in the state with the following broadcast segment that aired earlier this week. In the story, Lis Exon talks to Oklahomans about their use of the product, how often it’s used, and why OK consumers are choosing to use it over its “traditional” alternative.

Though the cost is more expensive than a credit card, 13 percent of Oklahomans have used a loan store in the last five years. Not only has the product become more mainstream, but Oklahomans don’t always have access to credit cards (due to credit ratings or lack of access), and prefer a payday loan for its convenience, reliability, and upfront disclosures.
When asked why she would choose a payday loan over a credit card, Billie Adams, an OK payday loan customer said: “This I can control if I need it for a week, if I need it for two weeks. I can take control and pay it back.”
And how do complaints stack up against storefront payday lenders in Oklahoma? Well, they’re virtually nonexistent. According to Rick Brinkley of the Tulsa Better Business Bureau, in the last three years, only complaints about some online payday loan companies have skyrocketed. “We’ve seen nearly 3,000 complaints on tribal payday loan companies,” he said. “We have seen one complaint, I believe, on a traditional payday loan company.”
“I would personally prefer to have storefront payday loan companies in the state, with restrictive laws that are pretty limiting to what a consumer can get. Cause if we do away with payday loan companies in this state, we are literally pushing the poor to these websites where they will be—in my opinion—taken advantage of,” Brinkley said.
Path:

CFSA’s Rebecca Adler has a great letter in Tulsa World: 

Moreover, 41 percent of payday advance customers earn between $25,000 and $50,000; while 39 percent report incomes of $40,000 or more. Therefore, the industry doesn’t “thrive” on the poor. In such an economy, the majority of working Americans are living paycheck to paycheck and need payday loans to absorb unexpected expenses. That’s why they often use payday advance more than once a year. In fact, many bounce checks and use overdraft protection at a much higher frequency than the rate at which they use payday loans. Limiting their use only drives consumers to more expensive and less desirable alternatives.

Unregulated Internet lenders hurt the reputation of the industry.    Oklahoma is moving to regulate them.  From the article: 

“That’s an area where we receive a lot of complaints,” said Butch Hooper, administrator of the state Department of Consumer Credit.

There are many dangers with taking out a payday loan over the Internet. Hooper said his agency will propose legislation this year that would declare Internet lending contracts to be null and void if the lender is not licensed

Or at least he was.   According to this article, he was an investor in a company called “Federal Cash Advance” of Oklahoma.    

The Payday Pundit likes Toby, but has more appreciation for the all-time greats like Waylon, Willie, and Merle, not to mention the greatest, Johnny Cash.