Payday Loans – The Media – Common Sense

The media never entertains the idea that the payday loan product can do any good despite the fact that consumers by the millions use them! Every media treatment is focused on the negative; the few in our industry, like all industries, that do harm our reputations.

So, it’s nice to happen upon a news rant that average folks chose to comment on. And even nicer to find a couple of common sense responses by consumers lacking an ax to grind!!

Here’s a novel idea from Jeffrey over at: Arizona Star

“Kind of an easy target. Since these places are successful a lot of people must use their services. Why has no reporter ever interviewed people for whom the Payday Loan places were helpful? What will these customers do now if they need a few hundred bucks to tide them over? Will you loan it to them?”

And Michael adds this, “It is good these politicians want to do away with the Payday lenders because they would probably never need them. These make a good target with out doing much work and the pols get their name in the press.

Jeffrey has it right, interview the people that use them. What are their needs?
When I was in the service every ship had their “payday lenders” 3 for 5 and they made the twice a month payday stretch.

Pawn shops are no different, when you pawn an object their success depends on you not paying it off in the 30 day period and they sell it at some value much greater than the pawn ticket was worth.”

It appears to me the average American citizen has the common sense our politicians, self-serving consumer protectionists, and our competitors (bankers, credit card companies and credit unions) lack!

What do you think? Does the average consumer get us?


Payday Loans – Ohio Update

The payday loan initiative scheduled to be voted on in the November ballot is at risk of being left off the ballot.

Secretary of State Jennifer Brunner said she’ll appoint a hearing officer to decide if consultants hired to collect signatures to place the measure on the ballot properly filed the petitions.

Gov. Ted Strickland in June signed a law restricting the annual percentage rate that lenders can charge to 28 percent, and limit the number of loans customers can take to four per year.

The payday loan industry managed to collect 422,000 petition signatures to place their initiative on the November ballot.The ballot measure needs 241,000 signatures from at least 44 of Ohio’s 88 counties to qualify.

The payday loan measure will repeal the cap on interest, allowing lenders to charge roughly 400% APR’s depending on the term of the payday advance.

Parties supervising the collection of ballot signatures must file a Form 5 with Ohio that lists the names and addresses of signature gatherers and the names of their employers. Brunner’s office can’t seem to find evidence the form was filed by Arno Political Consultants, a California firm hired to collect a portion of its signatures.

This failure could result in having the payday loan measure deleted from the ballot.

Sec. of State Brunner will decide Sept. 25 whether to accept the signatures and allow the referendum to be placed on the ballot.