Comments on: Payday loan legislation in the works http://bloggingblue.com/2009/08/06/payday-loan-legislation-in-the-works/ Blogging Liberally in the Badger State Thu, 09 Feb 2012 00:50:49 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: fred lessman http://bloggingblue.com/2009/08/06/payday-loan-legislation-in-the-works/comment-page-1/#comment-14656 fred lessman Thu, 17 Sep 2009 18:11:59 +0000 http://bloggingblue.com/?p=4521#comment-14656 The fact remains that if you do not like the terms then do not use the product The fact remains that if you do not like the terms then do not use the product

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]]> By: Emily Winkle http://bloggingblue.com/2009/08/06/payday-loan-legislation-in-the-works/comment-page-1/#comment-13454 Emily Winkle Mon, 10 Aug 2009 17:14:34 +0000 http://bloggingblue.com/?p=4521#comment-13454 Borrowing from family or reducing expenses are the optimal solutions for people with short-term financial problems. When that isn't an option, payday loans are a viable alternative when one compares other common short-term credit fees expressed in terms of an APR: $100 <a href="https://www.checkngo.com" rel="nofollow">payday advance</a> = $15 fee (391% APR); $100 bounced check = $54 (1409%); $100 credit card balance with late fee = $37 (965%); $100 utility bill with late/reconnect fees = $46 (1203%). As for the the high interest rates leading to high profits, a recent study cited by the Buckeye Institute concluded that the average profit margin for payday loan only stores was only 3.57%. Your typical commercial lender has a profit of 13.04%, which is much higher than your local payday lender. As silent E said, payday loan companies are completely transparent. People borrowing know exactly what they will owe before they take out the loan. There are no hidden fees. Without payday loans, people are forced to pay even the higher interest associated with late fees and reconnect fees. Borrowing from family or reducing expenses are the optimal solutions for people with short-term financial problems. When that isn’t an option, payday loans are a viable alternative when one compares other common short-term credit fees expressed in terms of an APR: $100 payday advance = $15 fee (391% APR); $100 bounced check = $54 (1409%); $100 credit card balance with late fee = $37 (965%); $100 utility bill with late/reconnect fees = $46 (1203%).

As for the the high interest rates leading to high profits, a recent study cited by the Buckeye Institute concluded that the average profit margin for payday loan only stores was only 3.57%. Your typical commercial lender has a profit of 13.04%, which is much higher than your local payday lender.

As silent E said, payday loan companies are completely transparent. People borrowing know exactly what they will owe before they take out the loan. There are no hidden fees. Without payday loans, people are forced to pay even the higher interest associated with late fees and reconnect fees.

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]]> By: silent E http://bloggingblue.com/2009/08/06/payday-loan-legislation-in-the-works/comment-page-1/#comment-13375 silent E Fri, 07 Aug 2009 22:55:12 +0000 http://bloggingblue.com/?p=4521#comment-13375 Put interest in context Zach... You're thinking APR, these loans are for 2 weeks at the most just to get over a hump so the interest accrued is not as bad as the numbers sound. If you pay something like an 80 dollar fee on 400 dollars to keep yourself out of a bind then you do it. The fees are spelled out before you get the cash. Where else can these people go? Put interest in context Zach… You’re thinking APR, these loans are for 2 weeks at the most just to get over a hump so the interest accrued is not as bad as the numbers sound. If you pay something like an 80 dollar fee on 400 dollars to keep yourself out of a bind then you do it. The fees are spelled out before you get the cash. Where else can these people go?

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]]> By: Zach W http://bloggingblue.com/2009/08/06/payday-loan-legislation-in-the-works/comment-page-1/#comment-13361 Zach W Fri, 07 Aug 2009 17:12:29 +0000 http://bloggingblue.com/?p=4521#comment-13361 Seonah, explain to me how 500% interest rates don’t hurt consumers. I’d love to hear some explanation on that, Mr./Mrs./Ms. Lobbyist. Seonah, explain to me how 500% interest rates don’t hurt consumers. I’d love to hear some explanation on that, Mr./Mrs./Ms. Lobbyist.

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]]> By: Zach W http://bloggingblue.com/2009/08/06/payday-loan-legislation-in-the-works/comment-page-1/#comment-13358 Zach W Fri, 07 Aug 2009 16:27:31 +0000 http://bloggingblue.com/?p=4521#comment-13358 E, are you saying they'll probably not make it if they can't charge 500% interest? E, are you saying they’ll probably not make it if they can’t charge 500% interest?

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]]> By: Seonah http://bloggingblue.com/2009/08/06/payday-loan-legislation-in-the-works/comment-page-1/#comment-13355 Seonah Fri, 07 Aug 2009 14:12:52 +0000 http://bloggingblue.com/?p=4521#comment-13355 Resulting response: Placing a 36% fee cap on the payday advance industry will take away a viable consumer choice. If [BLANK SENATOR/STATE] places a cap on the industry, [HE/SHE/IT] will only hurt the very consumers [HE/SHE/IT] seeks to protect. Capping the industry will eliminate a valuable consumer choice. For more information, check out: www.wddagroup.org Resulting response: Placing a 36% fee cap on the payday advance industry will take away a viable consumer choice. If [BLANK SENATOR/STATE] places a cap on the industry, [HE/SHE/IT] will only hurt the very consumers [HE/SHE/IT] seeks to protect. Capping the industry will eliminate a valuable consumer choice.

For more information, check out: http://www.wddagroup.org

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]]> By: silent E http://bloggingblue.com/2009/08/06/payday-loan-legislation-in-the-works/comment-page-1/#comment-13350 silent E Fri, 07 Aug 2009 11:57:59 +0000 http://bloggingblue.com/?p=4521#comment-13350 These places need to be staffed and they have physical locations that require a rent payment. How will they survive? Where will the people who use and need this service get short term loans? These places need to be staffed and they have physical locations that require a rent payment. How will they survive? Where will the people who use and need this service get short term loans?

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]]> By: PartiallyBlue http://bloggingblue.com/2009/08/06/payday-loan-legislation-in-the-works/comment-page-1/#comment-13343 PartiallyBlue Fri, 07 Aug 2009 03:36:07 +0000 http://bloggingblue.com/?p=4521#comment-13343 WOW! 18%? That is less than some of today's credit card rates. Thanks for letting me know that Wisconsin has no usury laws. Does anyone find it interesting that the Free Market in Pay Day Loans does not drive down interest rates? I do. WOW! 18%? That is less than some of today’s credit card rates.

Thanks for letting me know that Wisconsin has no usury laws.

Does anyone find it interesting that the Free Market in Pay Day Loans does not drive down interest rates? I do.

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]]> By: Super Id http://bloggingblue.com/2009/08/06/payday-loan-legislation-in-the-works/comment-page-1/#comment-13342 Super Id Fri, 07 Aug 2009 02:57:59 +0000 http://bloggingblue.com/?p=4521#comment-13342 There are no usury laws anymore in Wisconsin, we had an 18% cap but eliminated it in the 80s. There are no usury laws anymore in Wisconsin, we had an 18% cap but eliminated it in the 80s.

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]]> By: PartiallyBlue http://bloggingblue.com/2009/08/06/payday-loan-legislation-in-the-works/comment-page-1/#comment-13341 PartiallyBlue Fri, 07 Aug 2009 02:27:21 +0000 http://bloggingblue.com/?p=4521#comment-13341 Does anyone know the difference between usury laws and payday loan regulation? Why are both necessary? Does anyone know the difference between usury laws and payday loan regulation? Why are both necessary?

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