South Carolina Citizen Journal

May 24, 2009

Pay Day Lending

Filed under: Bureaucracy, Economy, Ethics, legislature, South Carolina — NotforHire @ 8:05 am

Let’s get a few things straight.

The pay day lending industry in our state are bottom feeders. They charge upwards of 400% interest on their loans. They fray the base of our society and make our state weaker.

When I read that they have a strong lobby within our state’s legislature I am sickened. Any politician defending these bottom feeders should be run out of office and out of our state too, as far as I’m concerned.

Loaning money in our state should be capped at 30% above prime, a return any real investor would be more than happy to get. The present plan to unnecessarily expand government by implementing a state run pay day loan tracking database should be scrapped.

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3 Comments »

  1. The same day you posted this, I received a slick looking 4-color card in the mail with a headline “Worry-Free Advances.” It goes on to say “Pay no fees if you lose your job while you have a current cash advance with us…. One less thing to worry about.”

    The photo shows a mother and small child. The child is pointing out the window. The obvious caption is “Look Mom, they’re towing away our car!”

    I think your description probably is an insult … to catfish.

    Comment by Chuck Boyd — May 24, 2009 @ 2:24 pm

  2. Regulator reports showing that more than 90% of payday advances are repaid when due debunk the allegation that payday lenders don’t consider borrowers’ ability to repay. Moreover, all reputable payday lenders have underwriting criteria and requirements of a steady income and checking account. One of payday lending’s largest opponents, the Center for Responsible Lending, is among those set to benefit if payday lending is banned. CRL is the creator of the Self-Help Credit Union.

    Comment by JeffKursman — May 28, 2009 @ 8:39 am

  3. 30% on a $100 loan for two weeks would be about $1.25. Do you really think someone can make money loaning $100 for $1.25? If so, tell the banks to do it. The reality is you have to charge a lot because the risk is high. Most payday lenders net 1% or less after overhead and write offs. Banks are the real villains today with overdraft charges reaching $35 for average loan sizes of $27.

    Comment by Tom Jones — June 30, 2009 @ 3:03 pm


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