10
Jul

Complaints About Payday Loan Companies-The Real Story

October 1 2011 through September 30, 2012, 2.34 million payday loans transpired in Missouri. Total complaints? 135. That’s correct! 135 complaints were received by the Missouri Division of Finance out of 2,340,000 payday loans. And, of the 135 complaints received, 54 were made against LICENSED Missouri payday loan lenders! 81 were against unlicensed Internet payday loan lenders.

Can you guess how many “renewals” were issued to Missouri payday loan consumers? 1.5! Yes, in spite of all the bull shit the media and the consumer advocates claim, the REAL – DOCUMENTED DATA, as reported by Richard Weaver, Commissioner of Finance for Missouri, reveals the truth!

The average loan was $306.12, the average interest rate was 454.62% and the average fee for a 14 day payday loan was $53.38. Defaults? 5.23%.

Want the facts? Or, you’re willing to allow the competition to continue to spread the lies? Here is the Missouri Report.

What’s all this mean? Our industry does a PATHETIC job of getting the truth out. We simply are not as well organized as the competition. It’s rare to hear testimonials from the real consumers who use our  products to extricate themselves from a short-lived financial challenge. (Of course, who in their right mind wants to come forward and publicly exclaim they use and LOVE payday loans? ) Instead, we’re barraged on a daily basis by stories of abuse; the single mom with multiple children trapped in a never ending cycle of debt.

At the risk of offending a few of you, I will point out a few successes.  The Borrow Smart Team does a good job as well as the Texas CAB Association. And FISCA, OLA, CFSA and others do devote a portion of member dues to protecting consumers, short-circuiting negative legislation and providing industry resources. Of course, everyone, including ME :o) has an agenda. Just follow the money…

Bottom line? I don’t embrace data bases but there are a multitude of states having implemented data bases that reveal a much different interpretation of payday loan consumer behavior than reported by our opponents. We ALL need to spread the word at every opportunity!

PaydayLoanUniversity.com
Jer@TrihouseConsulting.com

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Comments ( 4 )
  • miro posavec says:

    Jer,

    Here is a few other things they fail to mention. Bank of America quietly owns big shares in several national payday loan companies.

    This advocacy has to happen on a storefront level. It’s got be local. If the individual stores don’t get involved, they’re going to get legislated OUT of business.
    Here in Florida, we’ve had these adult arcades for YEARS. Basically, the old people would go there, hang out and play some games of skill and change to win gift cards. The average person would spend $20-$40 there in a day; PLUS they would be fed. That’s not bad.
    A large chain was trying to influence legislation, so they BRIBED a public official. The backlash was so bad that they closed them ALL down almost overnight.
    That’s a lot of closed businesses, and now the old people have nowhere to hang out. Pretty soon, they’ll be out there riding skateboards, falling down, and suing people.. **sorry about that last part. I’m writing this very late at night.***

  • JT says:

    135 complaints out of 2.34 million! That is AMAZING. The same results were shared in Austin, TX at the last legislative hearings. That’s why Corona’s bill lost support. Real payday loan customers testified. And the Texas OCCC admitted to 85? complaints out of 3.5 million Texas loans!

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