What is your opinion of payday loan establishments?
In some areas of the country they are trying to ban payday loan stores, citing predatory practices and unfair interest rates. These places have clearly listed their rates, as high as they are, on paper and listed in signed contracts. Opponents of the proposed law banning payday loans say that the extra fees are better than not getting money for a needed car repair, a bill that must be paid (electric, gas) or bouncing a check because the money was not in the account. What’s your take on these places. Explain your position.
Eye of Sauron said,
February 25, 2009 @ 2:44 pm
They seem like an ok idea to get you past a hard time but you do better pawning something interest wise than a payday loan. If you default on them they pound your bank account daily overdrawing it and costing you numerous bank charges. They should be made illegal.
Matt said,
February 26, 2009 @ 9:06 pm
I would never allow myself to get into the trap of using them. That is why they are considered evil because people have used payday loans as a way to pay for their lives from one paycheck to the next. And that is not what they are meant for; they are short-term credit establishments.
But there are people out there who do not have a stable income and, let’s face it, there are some stupid people out there. And that is why I think some regulation needs to be made. But I also believe that people need to accept some personal responsibility for their money and lifestyle decisions.
mikeburns55 said,
March 1, 2009 @ 11:51 am
Out here in AZ, a lot of Mexican immigrants have no bank account, so they use those places to cash checks. Many people want to make life hard on Mexicans, and therefore try to reduce the number of Payday loan places or make it harder for them to do business. It’s a form of closet racism.
Primordius Drool said,
March 2, 2009 @ 11:02 am
My opinion is that if your financial situation is so dire that you’re considering using one, you’d be much, much better off selling something - anything - you own and don’t immediately need.
Mary C said,
March 3, 2009 @ 1:05 pm
I think the payday loan stores have a place. The folks who use them would be unable to borrow the money anywhere else to tide them over in an emergency. Of course, the users should be aware that this is a one-time, short-term fix. But they really have no other options.
It’s much the same with the various “rent-to-own” appliance centers. The folks who use that method to buy a TV or appliance don’t have the option of walking into Sears and getting credit. Unfortunately, they end up paying many times the worth of the appliance before they own it.
It is the same old story…Rich folks get the elevator; poor folks get the shaft!