Posted on: 17th May, 2011 07:53 am
I have to say that I'm much gratified to see the discussion of payday loans and the ills associated with them is far less than in the past.
It seems that the noise we've made about these nefarious lenders and their tactics has had an impact, and that people are far less likely to become victimized in these times.
Many states have taken corrective action against the companies that have been among the worst, and that's cut down on the instances of fraud and simply downright despicable behavior towards consumers.
Lenders have their methods of finding new ways of bringing scams to consumers and ripping them off, but I am gratified to know that we've become ever more vigilant in our stance against their heinous deeds.
It seems that the noise we've made about these nefarious lenders and their tactics has had an impact, and that people are far less likely to become victimized in these times.
Many states have taken corrective action against the companies that have been among the worst, and that's cut down on the instances of fraud and simply downright despicable behavior towards consumers.
Lenders have their methods of finding new ways of bringing scams to consumers and ripping them off, but I am gratified to know that we've become ever more vigilant in our stance against their heinous deeds.
Hey George... I agree with you. Payday lending is a debt trap. It becomes very difficult to get out of this debt trap once you fall into it. I personally feel that all the states should declare payday lending as illegal. Thus, payday lenders won't be able to legally operate in the states.
It seems that in those states that payday lending is allowed, the practice is probably so well-entrenched that we're not likely to see a complete rejection of them. Of course, as we learn of more abuse by these lenders, more and more often that will result in scrubbing them entirely...we can at least hope.
I agree with adonis. It is very difficult to get out of pay day lending.
The way payday loans are structured, it's virtually impossible for a borrower to get free in any reasonable length of time. Though I've seen posters say they were able to borrow, pay back and be back on a normal path, I have to suspect that this is an extreme rarity - particulary with the testimonies we've seen from those trapped by the process over the years.
And so a couple of months elapse, and I pick up USA Today this morning, turn to page 4B (the Money section) and read the following headline:
Banks start offering payday loans
Please, everyone who cares about the travesty that is the payday loan, contact your congressional representatives, who might have an ear to the ground (or even to the winds), and let them know how vehemently you oppose this happening.
Banks that are mentioned are Fifth Third Bank in Cincinnati, Ohio and Regions National Bank in Alabama. The Fifth Third notion is to charge 300% interest. Granted that this is a far cry from the typical 400% charged by the shysters in the payday business, but for a bank to bring this about is a travesty.
The Dodd-Frank Act, which was enacted by Congress to protect consumers, is being used as the excuse for these nasty bankers to come out with this "product" for their customers. Because bankers are prevented from enacting certain fees on accounts, they figure this is a nice way to make up for the excessiveness they've gotten away with for all these years.
I plan to let my congress people know (TODAY) that they need to step up to the plate and provide another protective shield - against the payday loan and the vendors who will try to foist this on the public.
Banks start offering payday loans
Please, everyone who cares about the travesty that is the payday loan, contact your congressional representatives, who might have an ear to the ground (or even to the winds), and let them know how vehemently you oppose this happening.
Banks that are mentioned are Fifth Third Bank in Cincinnati, Ohio and Regions National Bank in Alabama. The Fifth Third notion is to charge 300% interest. Granted that this is a far cry from the typical 400% charged by the shysters in the payday business, but for a bank to bring this about is a travesty.
The Dodd-Frank Act, which was enacted by Congress to protect consumers, is being used as the excuse for these nasty bankers to come out with this "product" for their customers. Because bankers are prevented from enacting certain fees on accounts, they figure this is a nice way to make up for the excessiveness they've gotten away with for all these years.
I plan to let my congress people know (TODAY) that they need to step up to the plate and provide another protective shield - against the payday loan and the vendors who will try to foist this on the public.