I am apparently a leper within the Payday Loan industry, my article about the industry seems to have them all in a tizzy!
I have received some interesting comments and suggestions about my objectivity!
It was with much humor that I read the emails, and most particularly the email addresses being used. For spam reasons I will not reveal the entire address, but I heard from paydaylendingrep@***.com, and eezzloans@***.com. are these the kind of email address that inspires confidence?
MS/MR eezzloan offered me this sage advice: â€œSince you profile reads your into non-profit why don’t you start helping individuals in need with your resources for no profit? Then we can close the doors on all these places and you can save the world…..â€
eezzloan, most of the people I work with are users of your services, and without your ‘helpful’ Payday loan service, they might actually be able to put ‘bread on the table’.
Paydayloan informed me â€œOhioans will be left with fewer financial choices, 6,000+ people will lose well-paying jobs and 1,600 businesses will close and the state will lose tax revenue. I have a hard time understanding why, besides for political reasons, this appears to be a good idea.â€
I guess Paydayloan that the question I should ask is ‘just how well are these people paid’? And maybe if they are competent, they could find jobs that pay as well, and they could be helping the economy rather than hurting the working poor.
The good news is, some of the people had credible emails, and a credible email address goes a long way. I particularly enjoyed the email from someone using the nickname of Blade:
It’s not the users of Payday Loans complaining. It’s the self righteous and the politicians. Keno is OK? Right! Win the money to pay for your unexpected car repair. And use the right facts. Would YOU lend $100 to someone you don’t know, with poor credit and $00.00 in their bank account for 2 weeks for $3.96, the proposed rate? I didn’t think so!
If this was the way that Payday Loans worked, I doubt that anyone would have a problem. Paying $3.96 for borrowing $100 is a deal indeed! I would go for that if I was cash strapped. Hell I would send them a thank you card. Alas our friend Blade is missing one very component of the Payday Loan formula, the fee;s. On a $100 loan the processing fee will be in the $20 range. For a $100 Payday Loan, you can reasonably expect to pay $125 two weeks later. When you factor the fees into the equation the much touted 391% APR is completely meaningless.
Many people rely on the Payday Loan, and every two weeks they head down to the local store, because of the last loan they need another. To many folks it is a revolving line of credit. When you put the numbers on paper though, it becomes a horror show. Every time they get that $400 to pay the rent, or the utility company, or put food on the table, they have to pay approximately $525. Over a year they have made the Payday Loan company $1500 in fees and interest. $1500 is a sum of money that could well change their lives, but they have nothing to show but an empty bank account.
One of the people aiming barbed remarks at me actually does have some credibility, he offered a real name, and I plan on doing an interview with him. I am interested in discovering the other side of Payday Loans.
As to the rest of you, I have only one question, if you think the industry is so ‘up standing’, how come none of you are willing to publish your name? Afraid of the heat? My mother always said, if you can’t stand the heat, don’t come in the kitchen. I publish my name, but there again, I have nothing to hide.
If I was selling a hot product, I sure would want my name out there!