Comments on: Pay Day Loans and the Elections

By: Lora P.

Lora P. — Thu, 15 Apr 2010 15:40:24 +0000

The payday lobby has succeeded in collected enough signatures to get the referendum on the November ballot. However, the industry lobby engaged in some very underhanded tactics to collect their signatures. Many Ohio voters signed the petitions under false pretenses, often believing they were signing for “lower interest rates.”

By: Jeffrey Roberts from Student Loans No Cosigner

Jeffrey Roberts from Student Loans No Cosigner — Sat, 06 Feb 2010 18:03:43 +0000

I agree that payday loans are awful kinds of debt, and together with student loans, they are probably the absolute worst kinds of loans to take out. At least with payday loans you can get a bankruptcy discharge, with student loans you’re pretty much stuck with them for life. Have you seen the new Montel Williams commercial that makes it seem like he’s promoting a legitimate bank or loan company, when in reality he’s simply endorsing some payday loan outfit? Hilarious.

By: Monroe on a Budget » Tips from the money bloggers week of Dec. 1

Monroe on a Budget » Tips from the money bloggers week of Dec. 1 — Fri, 05 Dec 2008 18:03:14 +0000

[...] Family’s Money presents Pay day loans and the elections. “Instead of charging these people up the whazoo, we should be seeking to educate them and [...]

By: Moments of Fame « Funny about Money

Moments of Fame « Funny about Money — Tue, 02 Dec 2008 18:24:43 +0000

[...] cause enough hyperventilation, drop by My Family’s Money for a discussion of Arizona and Ohio ballot measures regarding payday loans. Bravely, Brip-Blap points out that we as individuals ought not to need bail-outs, despite the [...]

By: Steward

Steward — Tue, 02 Dec 2008 16:26:42 +0000

Hi Adam,

Thanks for the comment.

I think that the government should be in charge of stopping things that are bad for its citizens. I don’t think it should allow its citizens to be taken advantage of, and this is what I think payday loans do to some people.

For example, I can take a 0% loan whenever I want by using my credit card. (The amount of time I can take this loan varies depending on how close it is to my bill being due.) If I can’t pay all my credit card bill by the time it is due I still only will pay interest at about a 20% APY. This is something afforded to me because I come from a middle class background and have relatively healthy finances.

Am I in some way better than somebody that hasn’t had access to the same level of education and job training? Does my upbringing entitle me to pay an APY of 20%? To me this doesn’t seems very fair.

The fact that economically disadvantage persons suffer at the hand of payday loans is something that I don’t like. I also don’t like that banks charge them excessive fees. This is bad for our society and it should stop.

By: Adam

Adam — Tue, 02 Dec 2008 15:20:24 +0000

I don’t think the government should be in charge of telling a business how much you can charge someone for a loan, that interferes in the free market. A business offers a service that some people need and you want to put a halt to that? Take another spin on it, which would you rather do, pay a $39 overdraft fee at your bank, or get a $15 fee on a $100 loan so you don’t overdraft (savings of $24)?

By: Funny about Money

Funny about Money — Tue, 02 Dec 2008 00:02:00 +0000

Overall, the wording in the Arizona proposition as it appeared on the ballot was deceptive. If, like me, you got an early ballot and did not wait to send it in until a day or two before the election (by which time a clear discussion of this had come out in the media), you were likely to vote in error, thinking you were voting to regulate the industry but in fact voting exactly the opposite.

When I learned that I actually had voted in direct opposition to what I had intended, I almost complained to the voting officials and asked to have my ballot nullified. However, what with the craziness over the rabid attempts to keep immigrants away from the polls, I figured that was inviting trouble (I might never get near the polls again myself!), and so I just let it go.

But it made me very angry. It was deliberate deception and, and the proposition should never have been allowed to go to the voters like that.

By: Carnival of Personal Finance, Cyber Monday 2008 Edition | Mighty Bargain Hunter

Mon, 01 Dec 2008 06:03:38 +0000

[...] My Family’s Money talks about two states’ propositions on payday loans. [...]

By: Steward

Steward — Tue, 25 Nov 2008 21:24:22 +0000

Hi Emily,

Thanks for stopping by and for your thoughtful comment.

While I understand that late fees for missed bills and bounced check fees for improperly written checks can be astronomically high in terms of their APR, I do think that payday loans are a completely different beast.

With that said, I don’t think I would mind eliminating late fees on certain necessary utilities for the economically disadvantaged. Things like water, power, internet, housing, and land telephones should not have an associated late fee if a person is below a certain income level. I don’t mind the late fee on rich people or on luxury items (like cell phones, cable television, or car payments).

Most things that hurt those in need of help I would oppose.

By: Emily Winkle

Emily Winkle — Mon, 24 Nov 2008 15:32:14 +0000

I agree with you about your statement “we should be seeking to educate them and help them overcome the economic disadvantages”. Many times, people just aren’t taught how to save their money. This is why Check ‘n Go has a Cash Management section on their website to educate their users to better manage the money they do have (https://www.checkngo.com/cash-management-info.aspx?Source=NavBar).

I do work with Check ‘n Go, and part of my job is to see what conversation is taking place about the payday loan industry. And while it’s true the APR rates are in the 300’s, it is often forgotten payday loans are short term loans. Meaning, if a person is responsible with this loan, just like they should be with any other type of loan or even credit cards, it is a great resource to help them in tough financial times. When you compare bounced check fees, late fees, and harming your credit score; a payday loan is a responsible resource when used appropriately.

Unfortunately, not everybody uses a payday loan responsibly (which happens with so many Americans and their credit cards) and the industry has received a bad rap because of it.