Payday lenders

[ProdigalHorn]

Interesting take. In a time when everyone seems to need credit, is whacking one of the only available sources the right way to go?The LinkIn reply to:

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[Leftwith]

I must have missed the part where these payday lenders were going door to door with machine guns, forcing people to take out loans.

I'm not ashamed to say, I once took out a $500 dollar loan - the most they were allowed to give, thanks to government regulation - from one of these places to keep from being late on a car payment and dinging my credit. Yeah, it cost me $65 for a one month loan, but it would have cost me a LOT more had my credit been hit.

******* liberals.

 

[BigWill]

I live near Camp Pendleton, and there are a ton of them very close to the base.

There was a lot of noise a few years ago about banning them. I was of the opinion that the military should come up with a more affordable option for service members.

 

[Horn6721]

"I was of the opinion that the military should come up with a more affordable option for service members. "
Well there are credit unions.but you generally need to have some credit reliability.
Can you imagine the hassle and paperwork if the military /gov't actually got in the business of small payday loans?

I wonder the loss rate these payday lenders have.

I feel sorryfor anyone needing this service but it seems people who use it understand the interest rate. When you need 100 or 200 and you need it now at least there is a place to get it and it is voluntary.

 

[majorwhiteapples]

This is the same situation as the sub-prime mortgage situation.

If you don't understand what you are signing and the rates etc. you probably do not need to be getting a loan or mortgage.

If it is too good to be true, it is!!!

 

[Mr. Deez]

Payday lenders are a little like these "legal funding" companies that will loan you money in exchange for a lien against your bodily injury settlement that some of my old clients were foolish enough to buy into against my advice.
They dish out quick and easy cash, but it's always on horrific terms - astronomical interest, high fees, etc. Furthermore, they're not the Boys Scouts. If you screw them around, you'll want to ask someone else to start your car for you.

However, so long as they're fully disclosing the terms of the loan and the consequences of default, I don't really see how anyone can complain. They're a really sh&tty deal, but no one's forcing you to borrow from them.

I wouldn't mind a state imposing some reasonable disclosure requirements on them, because they aren't always in much of a hurry to tell you what you're getting into. However, this is a pure state issue. Nobody in the White House or on Capitol Hill has any business even discussing it.

 

[UTChE96]

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[militaryhorn]

You can get a pay advance in the military but it is limited on when you can get it. Your commander can sign for one but you better have a good reason for it.