Father forgive me, but you don’t know the payday loan
Show me the research, because your numbers on the payday loan are officially ignorant. While you’re looking for those numbers that may or may not exist, I’ll direct readers to parts one and two of this article on Ohio and loss of financial sanity.
Pat O’Bryan, who is the director of the Catholic Commission of Wayne, Ashland and Medina counties, wants to sound authoritative. He really does. Through the huffing and puffing, he wants us to truly believe that 97 percent of Ohioans who used payday loans couldn’t make the first payment. He would have us believe that the thoroughly defeated, downtrodden then went to a different company to pay off the first loan.
Wait, back up. Ninety-seven percent?!
Somebody is mistaken, looking through rose-colored glasses, or both. Faxless payday loans are a legitimate business that is required to make all fees and terms known up front before a customer signs a contract. If 90 percent of customers pay on time, it would be easily verifiable. If asked, Check Into Cash could provide access to pertinent data. Where’s O’Bryan’s info coming from?
The biggest problem with O’Bryan’s position is made clear when he says that he “feels bad that people have lost their jobs. ” He wonders how “you keep an unjust situation going to justify jobs and keep (in)justice going?” I would first answer this by saying that no fax payday loans are a legitimate business. Second, I’d drive home the point that keeping people in their legitimate jobs rather than kicking them to the curb during a deep recession is essential; playing out your pointless moral/logical fallacy argument is destructive. Or, in parlance people like O’Bryan can understand… the payday loan would be a sin. Ridiculous, yes? Read on, there’s MORE IN PART FOUR.
I have no idea where they get there interest numbers but here is where I get mine.
lets say you need to take out a $100 loan once a month. $15 a month. $1200 a year or $180
for many people this is not much different than a credit card. its like having a revolving line of credit of $100 that you pay off every month.
in credit card terms thats an interest rate of 180% APR.
Your flawed thinking is that they borrowed $1200
they did not. they borrowed $100 paid that back then borrowed the $100 again.
ie its a revolving line of $100 in credit (effectively)
If I did that on a CREDIT card. charged $100 and KEPT a revolving balance of $100 on that card for a year (lets say I could not avoid the fees by paying before the grave period because the fee is up front)
what interest rate would your credit card need to have to result in you paying $180 in interest?
YOU do the math.
ON top of that your treating ONE poison (overdraft fees) with NOT a solution NOT an antidote but with ANOTHER poison a ultra high interest payday loan.
that’s NOT the solution. they DO NOT provide a service they are ONE MORE PROBLEM in the system.
the SOLUTION is to stop banks from charging $35 overdraft fees.
you see for well over a decade I never have a problem with First Union. it was simple the CARD worked like a CREDIT CARD does. the money came out instantly and if there was NOT ENOUGH MONEY THE CHARGE WAS DECLINED
then wachovia bought them. they decided AGAINST my will to give me a “micro loan” with INSANE interest rates IE $35 fee per instance.
I was raving mad. I went to buy a Soda was short 13 cents (I kid you not) and they charged me $35
HELLO if you had said Ok sir I can let you buy this soda but I am going to charge you $35 extra for the priviledge.
Guess what I would tell you to do with that soda?
I was never given the option. they removed it and “REMOVED” the micro loan option. every few months they would “add it back on” and I would raving mad make them remove it.
then eventually they said NO. its MANDATORY NOW. its COMPULSORY.
You think that’s right?
if there WERE NO overdrafts of that sort THEN payday loans MIGHT service a purpose and at a much better “rate” than the banks charges with overdraft fees.
as the system stands they just make the problem worse.
Driving out an industry that is far more disclosing and upfront with its customers, most of whom pay on time, which is more than any credit card or mortgage company can claim, and causing hundreds to go unemployed is the greater sin. Payday loan stores have done more good than bad, and I have no idea where the advocacy groups are getting their numbers.