Payday Loans Fight The Opposition For Consumer Freedom

The Fight Continues for Payday Loan Stores in Arizona

Payday loans are predatory? Thats what the opposition would like you to think.

The war over payday loans continues in Arizona. Last week voters rejected Proposition 200, a ballot initiative financed and written by the loan companies to allow them to continue to charge their current interest rates on small loans.

Those who voted against proposition 200 claim that payday loan stores take advantage of and prey upon the poor.

What? “Prey upon the poor”?

This isn’t the animal kingdom, these brick and mortar stores are not preying on anyone, but they will be praying to stay in business if they can’t persuade lawmakers to ignore the voter’s wishes which was counted 60% to 40%.

Propaganda is to Blame

Much of the propaganda against the loan companies comes with talk of the payday lenders interest rates on the short term loans they give out. Even though, by law they can’t charge more $17.65 for a $100 loan, the opposition advertises the interest rate in terms of APR, so you would have to literally default on your two week payday loan for an entire year to accrue the APR interest rates that the opposition uses in their campaign against the small loan establishment.

Unfortunately, many voters who have no experience with payday loans are easily swayed by these twisted truths. If lawmakers pass the new new initiative their will be a 36% interest rate cap which means lenders will only be able to make $1.36 in revenue for every $100 they loan out. This will drive them out of business overnight.

Preying on the Poor?

As for preying on the poor, this is a shot below the belt by the uninformed and uneducated opposition. You cannot qualify for a payday loan, unless you have proof of income. In fact the average consumer who takes out payday loans makes between 30K and 40k a year.

A closer look at the truth!

As for being predatory, Payday loans don’t pounce upon you while you are sleeping nor do they lie in wait in unsuspecting places to devour your financial resources. There is no element of surprise here. When it comes to payday loans the consumer is not under attack. They have to initiate the search for there payday loan source, read the contract and sign it themselves. It is a service that is provided with terms and conditions that consumers can simply say “YES” or “NO” to. No physical force, no hypnosis, no telepathic mind control, or anything of else of the likes. Just a simple choice.

This kind of opposition is only opposing the freedoms that Americans have to decide for themselves. The only predator here, is the opposition against the payday loan companies.

If you want a payday loan, great! If not, fine. I couldn’t be simpler or more straight forward than that.