They’re at it again. The Center for Responsible Lending, the corrupt “charity†that consistently and fraudulently attempts to ban payday loans to fill their own coffers with competing products, has released the results of another “Studyâ€. This time, in an attempt to remove consumer choice from Ohio and Arizona, they trot out a study from the University of Michigan. Out of one side of their mouth, they proclaim, “The survey by University of Michigan law professor Michael S. Barr found that respondents using payday loans were more likely to file for bankruptcy, be evicted, or face utility shut-offs than respondents who had not taken a payday loan.†Ah, but just a few lines down, they bury the lead: “While the Michigan survey does not establish a causal relationship…â€! Well, this is typical of the CRL’s thuggish tactics.
They parade around ridiculous studies that have flawed data collection techniques, draw false conclusions from this flawed data, then try to snooker unsuspecting readers that this smoke-and-mirrors job supports their assertion. Just to reiterate, the CRL has its own loan product. They want to drive payday lenders out of business so they can have a monopoly. They are entirely funded by government grants and George Soros – the man who wants to raise taxes on everyone but himself, while he secrets his wealth off-shore.
The facts are, and always have been, on the side of payday lenders. They are sources of short-term credit that 93% of consumers use responsibly. If they could get a free loan from a friend or relative, they would. They are smart enough not to bounce checks, which cost more than a payday loan. Don’t buy the rotten fruit that the CRL is trying to pass off as freshly harvested. It’s rotten to the core, just like they are.
6 users commented in " The Center for Irresponsible Payday Loan Studies "
Follow-up comment rss or Leave a TrackbackI have to admit that when I first came across the Payday Loan industry, I was horrified! The ‘facts’ were clear, this was an industry preying on those that could least afford it. The APR on these loans went from 300% to over 1000%
Outrageous, I shouted. Then I looked into the reality a little more. You have no credit cards, you have no credit at all, you don’t have rich relatives or friends, but you still need to get your car fixed, otherwise you can also add NO JOB, to the list of things you do not have.
A Payday loan is exactly what it sounds like, a short term loan till next payday. The average repayment terms work out to be about $10 per $100 borrowed.
The Banks don’t want to get involved, they are too busy bankrupting the country to care about making a $100 loan that is unsecured. They would rather squander $billions and wait for the feds to bail them out.
The vast majority of people that borrow that $100 pay it back, can the Banks claim that as well?
Oh and this is not an anonymous post, I don’t mind sharing my email address, just click on the big black box to your right, that says Writers Wanted (I am the Editor).
Simon
[…] Random Feed wrote an interesting post today onHere’s a quick excerptThey’re at it again. The Center for Responsible Lending, the corrupt “charity” that consistently and fraudulently attempts to ban payday loans to fill their own coffers with competing products, has released the results of another “Study”. This time, in an attempt to remove consumer choice from Ohio and Arizona, they trot out a […] […]
Of course people who use payday loans are more likely to file for bankruptcy, etc., than people who don’t. Payday loan customers use payday loans because they’re in relatively poor financial shape. Any idiot could thus tell you that they are more likely than the average person to exhibit other symptoms of financial hardship.
The only thing this “study” tells you is that the University of Michigan, which I imagine funded it, should fire law professor Michael S. Barr – who coincidentally released his brilliant work right before the Arizona and Ohio referendums were to be voted on.
And the FTC then allowed Dr. Barr to give them a presentation on the survey. I wonder how much that cost in FTC employee time. Good to know they are spending our tax dollars wisely.
It’s a mad mad mad mad world…
Check out another new peer to peer lending website at yadyap.com. YadYap still getting the final touches of the system completed and hope to launch soon.
YadYap has a unique niche: Peer to Peer Payday loans!
We will allow the everyday lender to lend small amounts of money to borrowers that would otherwise have the only option of a traditional payday loan.
YadYap is different than everyday payday lenders because we have an auction system that will deliver the lowest rates possible to borrowers due to an efficient market being created.
What about lender returns? Let’s just say there is a large spread to work with in traditional payday loans that will allow lower rates to borrowers with lenders still making good returns.
Let me tell you something alright? Leading up to the time that we had to take out a cash loan, we didn’t see anything but negative remarks from others online about the cash loan industry. We ended up almost losing our car because we waited. At the last minute, we borrowed $400 from http://www.cashloancity.com and I really believe it is the only thing “at the time” that saved us. I understand that there’s a problem with some people abusing this industry and crying about it later, but what about the people that really need it and pay it back on time? We’re even getting ready to have a positive mark on our credit because of it. Why are the people that never need this type of loan the same people that keep others from being able to get one?
[…] Every study quoted is truly non-partisan with impeccable methodology, as opposed to the alleged Center for Responsible Lending. I have experience in the stores with customers and owners alike. I’ve visited many times […]
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