A D V E R T I S E M E N T
A D V E R T I S E M E N T
ADVERTISEMENTS
Check Into Cash of Cleveland, Tenn., said Wednesday that it was closing its remaining 13 Oregon stores, blaming the state Legislature for hurting its business.
The company’s decision came a year after the Legislature adopted a law imposing a 36 percent annual percentage rate cap on payday loans.
W. Allan Jones, Check Into Cash chief executive officer, said the new law hindered its efforts and proved too tough to work around.
“We tried to work within the constraints of the law, but lost money each and every month we tried to operate there under the new rules,” Jones said. “We have proven that it cannot be done.
“We are saddened that we have been forced to close our stores, putting our employees out of work and leaving our customers without a service they appreciated.”
Check Into Cash is private company with annual sales of about $31.5 million and more than 1,200 stores in 30 states. Customers use the payday loan service by putting up a personal check for a specific amount, plus fees and interest, which is held until their next payday.
When the legislature passed the 36 percent limit the company closed many of its stores. No longer able to offer payday loans, Check Into Cash tried to meet customer needs by offering check cashing services and a new loan product, which weren’t popular, Jones said.
“As we warned the legislators in Oregon, payday lending cannot be offered under a 36 percent rate cap,” he said.
This is one piece of liberal legislation that I agree with. Good to see them leave.
(email verified)
Tue, Mar 11, 2008 at 09:28 AM
They are upset they can't charge more that 36 percent for their loans? I'm with the others on this one, good riddance to the scum-sucking leeches. One report said a customer ended up owing $3600 on a $600 payday loan. Atrocious.
(email verified)
Tue, Mar 11, 2008 at 09:31 AM
What idiots. Now where do you think these people will be going to get loans? Morons, you think the government should be telling companies what they can charge?
(email verified)
Tue, Mar 11, 2008 at 09:45 AM
I'm a loan shark and I will benifit again..HA HA HA
I only charge 30% suckers!
(email verified)
Tue, Mar 11, 2008 at 09:50 AM
If you planned for expenses and used a BUDGET (google it if you don't know what that means) you wouldn't need payday loan! Good Riddance! What a horrible company!
(email verified)
Tue, Mar 11, 2008 at 10:13 AM
and your a fool to sign up for it. Suckers beware and if you pay 36% I have no sympathy for you what so ever!
(email verified)
Tue, Mar 11, 2008 at 10:25 AM
The fact is, people DONT budget wisely and need these places to survive. I wonder where they will get the loans now? The people that used the loan companies are NOT happy to see them go.
(email verified)
Tue, Mar 11, 2008 at 11:04 AM
For once State Oregon is doing something right for it's
people. 36 percent, Poor baby. Let say out of our state!
(email verified)
Tue, Mar 11, 2008 at 11:29 AM
I hate payday loan companies, and am not sad to see them go - but I don't think it is reasonable they can service the deadbeat community and turn a profit at 36%
(email verified)
Tue, Mar 11, 2008 at 12:08 PM
Any body who owes these companies more than $300 is an idiot. Government shouldn't be screwing business no matter how much we don't like them and their interest rate.
Don't like it? Well then don't use it...I don't feel a bit sorry for anyone thats swindled by these companies - 9 times out of 10 they know exactly what they're getting into.
(email verified)
Tue, Mar 11, 2008 at 12:51 PM
This is just one company, Anybody's who had drove around Portland lately probably didn't have to search too far for a payday loan company. Don't feel to bad for this company, the 36% is not a ARP (Annual Percentage Rate). This is the amount per loan or instance. Which means if a person borrows $500.00 they have to pay back $680.00 on their next payday (at 36%). The problem with these types of companies is most people can't fully afford to pay back such high fees and they have to borrow again. The 36% is not a true indicator of the amount they actually charge. If a customer continuously borrows and reborrows the ARP is actually over 500%
(email verified)
Tue, Mar 11, 2008 at 01:04 PM
Too bad more of the pay day loan companies are not pulling out. Good ridance to bad rubbish.
(email verified)
Tue, Mar 11, 2008 at 02:09 PM
Sorry Casey, but it is a 36% APR - so if it is for a month, then you are looking at 3% (plus other fees) - it simply isn't enough for short term loans to make a profit.
(email verified)
Tue, Mar 11, 2008 at 03:03 PM
Although some people may learn how to budget or simply do without, other will turn to a new funding source: your stuff. Hope your renter's or homeowner's insurance is up to date...
(email verified)
Tue, Mar 11, 2008 at 03:57 PM
36%? how do you expect anyone to stay living in their multi million dollar mansions with their 12 cars and $5,000 shower curtains, and yachts, etc? Now what are the owners and managers for "Check into Debt" going to do now? I feel bad, maybe we should let anyone charge anything they want and get away with it... OH WAIT, WE DO... has anyone paid for GAS lately? ($91 BILLION dollar PROFIT! PROFIT! PROFIT! last year) remember last year?
(email verified)
Tue, Mar 11, 2008 at 04:52 PM
Good riddance. Another plus: I won't have to see their commercials on TV anymore. The song in the commercials is almost as bad as the whistling in the Enzyte commercials.
(email verified)
Tue, Mar 11, 2008 at 07:57 PM
I have used Payday loans in the past and the ammount that I paid then is the same that is paid now if you pay it back on time. 20 dollars for every hundred borrowed. The APR may have lowered but they just made it up in "loan fees" These places never intend to make money on the loan itself. They make the real money when the person continually refinances the loan or defaults and thats where the real money comes from. Penalty fees and interest on compounded loan and penalty fees.
(email verified)
Tue, Mar 11, 2008 at 08:49 PM
Back to the Bible Belt (Tennessee) -where ironically, usury is a more acceptable practice.
Now, if we could only send the Republicans who blocked the legislation for so long right back there with them....
(email verified)
Tue, Mar 11, 2008 at 10:51 PM
These payday loans are the biggest scams of our time. Glad they'll be gone as they pray on the poor.
(email verified)
Wed, Mar 12, 2008 at 12:58 AM
Well, I agree with Casey and the others saying good riddance. Desperate people use those kinds of places and they just end up worse then before. It is just another form of slavery - owing your soul to the company store.
As for Tiffany Barnswell,the government has been telling everyone what they can charge...for years.Why haven't you noticed before?
The guy who thinks stealing is the way. Think on this, when you get caught stealing and you eventually will, our taxes dollars will house, feed and supply health coverage for you.But hopefully legislature will pass a law to treat criminals like criminals should be treated.
Just the basics. No cable tv, no special foods, no conjugal visits. Basic needs only. Room and board.
That is reality.
(email verified)
Wed, Mar 12, 2008 at 01:04 AM
Why do so many people want to be governed so badly and keep voting for more government intrusion in our personal lives? What do they have against freedom?
People do stupid things with their finances all the time. Are we going to make laws against blowing your money or buying things beyond your means to pay for them? How about a law against doing anything stupid that gets you in trouble or more trouble? Oh, sorry that would require personal responsibility. How about against whatever inabled them to do something stupid. That way it's other peoples fault.
(email verified)
Wed, Mar 12, 2008 at 02:02 AM
I think they are predatory also and I have no use for them. But the fact that they have in the past been able to thrive here bears testimony to the underlying problem. Our job base is so badly degraded that more and more people are making minimum wage and living hand to mouth, paycheck to paycheck. If they have an unexpected emergency come up they have no savings, no credit and no collateral. What are they supposed to do?
(email verified)
Wed, Mar 12, 2008 at 02:31 AM
This is great! Now if they would just take care of the rest of these predators like; Wells Fargo, Chase and Citigroup.
(email verified)
Wed, Mar 12, 2008 at 02:35 AM
Now how am I to get cash when I run out of crack?
(email verified)
Wed, Mar 12, 2008 at 02:45 AM
http://www.checkcity.com
Payday loans are great in situations where you don't have enough to make it until next payday.
(email verified)
Wed, Mar 12, 2008 at 03:24 AM
it may have been said but good riddance to corporate greed. I personally believe the feds need to do the same thing but at a lower apr. These companies feed off the misery they create and need to be driven out.
(email verified)
Wed, Mar 12, 2008 at 03:35 AM
The new law (Oregon Senate Bill 1105) does get rid of the old payday loan companies charging in excessive of 500% APR on short term loans, However the new law allows these companies to add up to a 10% origination fee per each payday loan. Under Senate Bill 1105, a Lender can charge the equivalent of 153% APR under a 31-day Loan (10% origination fee plus 3% monthly interest).
(email verified)
Wed, Mar 12, 2008 at 03:49 AM
What idiots. Now where do you think these people will be going to get loans? Morons, you think the government should be telling companies what they can charge?
"tiffany Barnswell"
Well Tff either you work for one of these types of companies OR your clueless that a 36% rate is way to high. Its called BUDGET your money.
Payday loans are great in situations where you don't have enough to make it until next payday.
"Krystal"
Live within your means then,if your short this payday and borrow, your sure as hell going to be short on the next payday.then the cycle repeats,again live within your means
(email verified)
Wed, Mar 12, 2008 at 03:56 AM
This is awesome!!!
Now they just need to get rid of the other gigantic scam in this state, VIDEO POKER. Video poker accounts for far more problems than the check cashing places. If you notice, most of the check cashing places were right next to the poker places like Dotty's. I wonder what the ratio of check cashing users was to people addicted to video crack?
The truth about this legislation is that the only reason it passed was because the state wasn't making a large enough percentage of the profits.
BAN VIDEO POKER
(email verified)
Wed, Mar 12, 2008 at 03:56 AM
For those of you who haven't done the correct math... 36% apr on a $300.00 loan for 31 days (which is also part of the new state law) equals (in dollars) $9.15. Yes, there is a 10% loan fee so for a 31-day loan, for $300.00 the company makes $39.18. How much of a profit do you think a company can make off of that. The reality is that the state cut the payday loan fees by 70%, making it almost impossible for companies to stay in business. There is a HUGE demand for these loans in the state, but with the new laws most places have had to close. The fact is, if you don't like them, don't use them!
(email verified)
Wed, Mar 12, 2008 at 04:28 AM
Has anyone heard of free markets and limited government?
Let the buyer beware.
Milton Friedman: don't forget what Milton Friedman taught us. Free Markets.
Liberals want to protect us from ourselves again.
God help us from their evil
(email verified)
Wed, Mar 12, 2008 at 04:44 AM
Sounds like the mental giants Tiffany Barnswell and The Punisher must be sharing the same bong. Nothing useful, just more mental flatulence.
(email verified)
Wed, Mar 12, 2008 at 05:20 AM
Yes, the 36% is an APR. That allows a payday company to earn $1.38 on a two-week $100 loan. Previously, they earned the $15 fee. How anyone can think that $15 is too much on an unsecured, high risk, instant loan of $100 is beyond me. But, yes, when you sign a loan contract, you are expected to pay it back...whether it's a payday loan, car loan, mortgage, flat screen TV, or whatever! But now that the government is stepping in to protect you, nobody may ever have to pay off anything again...such a deal! Just like our national debt...
(email verified)
Wed, Mar 12, 2008 at 05:43 AM
For as much as I despise these companies, (as well as pawn shops)it seems because a few people can't control themselves the option is removed from the tabe for all. I haven't had the misfortune to need the services of these places, but now if I should, I don't even have the option.
With this logic in place, we should ban casinos and gambling machines, close down liquor stores and adult theaters as well. These places are known for causing issues as well.
Where dose it end, we need to take a bit of personal responsability and if you don't like it, don't use it. I don't need the government and insurance companies telling me what I can and can't deal with.
(email verified)
Wed, Mar 12, 2008 at 05:54 AM
Congratulations to those of you who have not had the 'misfortune' to need the services these places provide. True, the 'services' are predatory and prey on those people who have no other options. How lucky we are to have a government that looks after our finacial well-being; We cannot have private companies making money off the poor. I can see where these companies are nothing more than a bandaid over the gaping wound of poverty. On the other hand, when you are cying and desperate even a little bandaid might help.
(email verified)
Wed, Mar 12, 2008 at 06:18 AM
It is a shame that so many of you are so warped by what the media and the Government tells you. Our government officials didn't even read the bill before they voted. Trust me, I called my rep. (Ginny Burdick) to ask her some questions on her vote and she made it clear that she didn't even know the bill. Most people that take short-term loans are greatful to have that ability. Being able to pay $13 for $100 is a whole hell of a lot cheaper that $35 to bounce a check. It is simple math. The people that get into major financial trouble are the ones that go from place to place in a desperate attempt to rob Peter to pay Paul so to speak. Thankfully there will still be other companies in the state to offer this product so that people can contuinue to borrow money at a fair price.
Again, dont always ASS/U/ME what you hear is true until you have personal experiences no matter what the issue is in life.
(email verified)
Wed, Mar 12, 2008 at 07:08 AM
Next the state should look into credit card companies. There just should be some mathematical explanation for interest rates besides the voodoo economics that credit card companies use.
"I know you have paid all your bills on time and have never been late on a payment, but since you were born on a Thursday we have to raise your rates. A new study we conducted suggest that people born on Thursdays are 0.0001% more likely to default on a loan.....Please Sir don't yell at me, your mother was the one who chose to have you born on a Thursday....We raised her rates also because of this fact."
(email verified)
Wed, Mar 12, 2008 at 07:31 AM
Good Deal!! now why dont they do same for oregon slot machines
(email verified)
Wed, Mar 12, 2008 at 08:29 AM
HHmm! Back to the loan Shark Agian .I do have 4 Fingers left
(email verified)
Wed, Mar 12, 2008 at 08:35 AM
wonderful! payday loan companies prey on the stupid and irresponsible, like union workers and such. those lazy brain-dead idiots, no wonder they get payday loans they are retarded!
(email verified)
Wed, Mar 12, 2008 at 09:10 AM
A $500 loan for one month at 36% interest rate would mean you would have to pay $15(or 50 cents a day) interest for the loan. Seem more then fair. If you do not believe me Google loan calculator and put in the terms yourself and see.
(email verified)
Wed, Mar 12, 2008 at 09:10 AM
Blah blah "live within your means" blah blah "it's called a budget bud-jet" blah blah. Folks, ya know - if you had some kind of bad day, fine, we all have them, but why do you have to spread the bile around? The people that use these know what's going on - either they are the types that simply cannot deal with a budget or they do manage to budget but their resources are very light. When an emergency comes around and they're short, what do they do?
You don't approve of the service? Don't use it. No need to go around bashing on people.
(email verified)
Wed, Mar 12, 2008 at 09:14 AM
I say good riddance but to say all teh people who these is because of not having a budget? thats jsut as ridiculus. Theres is some truth to it but not as much as you think. I don't think the government should control much but an interest cap os a must or else we would have credit companies in the same state as oil companies. Making false reasons for the mark up, breaking historical profits but pleading it's not as good as it looks because there using it to help us in the future. Although there CEO's and other's are making huge salaries, bonuses etc.
(email verified)
Wed, Mar 12, 2008 at 09:17 AM
For those saying 36% is not that much... thats what they would be limited to now, not what they were charging before. It was often times much MUCH more than 36%
(email verified)
Wed, Mar 12, 2008 at 09:22 AM
Speaking of ones inability to budget. If the stores can't make money with an interest rate greater then 30% then they are the ones who need to budget. So used to lapping up their excessive amounts of blood money they are spoiled.
(email verified)
Wed, Mar 12, 2008 at 09:32 AM
This company has grown fat on pay-day loans and laziness. A smart company would expand their services in ways that made them profitable unlike Check Into Cash's half-hearted attempt with "check cashing services and a new loan product." FAIL! Sounds like they need to fire some people and hire one's who can do a better job of managing the company.
I don't like pay-day loans, but understand the need for them. I used them a few times in my youthful days of being broke. That said, I'm sick of every little aspect of life being legislated.
Still, good riddance...it is an opportunity for some savvy entrepreneur to step up to the plate, work within the laws, profit and expand.
(email verified)
Wed, Mar 12, 2008 at 09:33 AM
I used to go for high interest short term loans when I was a homeless rodeo clown but not any more. Now I am a world class magician !
(email verified)
Wed, Mar 12, 2008 at 09:44 AM
I worked for a payday loan company in Washington State for quite some time. I hated every single day I worked there because of how destructive these loans can be to the people who take them out, the worst part is that those people, they really think you're helping them.
A two week loan of $100.00 cost the borrower $115.00 to pay back, not so bad right? If you only qualify for $100.00 we would offer the full hundred and were encouraged to offer people as much money as they qualified for every time. Qualificaion based on income was the loan you gave had to be %50 or less of their bi-weekly income.
Examine why these loans are bad.
Lets say your car breaks down and the repair is going to cost you $500.00 You make $1400.00 every two weeks and are already paying rent and other bills that use up most of that money requiring you to look into the payday loan in the first place.
You qualify for a $600.00 loan which IIRC cost $685.00 to repay. Now the customer might not need $600 but we suggest that they might have some unexpected expenses with the repair because its only an estimate so you might just want to go for the $600.00.
Now, when payday comes along, they bring in the $685 to pay off what they borrowed. But they didn't make an extra $685.00 that payday to help cover all of their other expenses, and they have rent coming up and other bills to pay too. So what do they do? Reloan the $600.00.
I saw the same people every two weeks paying $95.00 for a $700 loan every two weeks for more than a year on end. The initial loan was $700 and they paid per year $2565 in interest fees to borrow it for a year.
I don't care what you say about keeping the government out of it, this is a predatory industry that doesn't produce anything but debt. They don't create a good or provide a service people really need. People get suckered into it because they don't think about what happens when they have to pay it back, they think about their immediate needs only and while that's not the fault of the business, it sure is taking advantage of the customer.
(email verified)
Wed, Mar 12, 2008 at 09:56 AM
I am glad to see these companies go. These companies exploit those who are most vulnerable.
"They just need to learn to budget." What a terribly shallow attitude. Yes, some people do need to budget; but if you have not noticed the economy is not exactly peachy.
Young people today are subjected to a very unstable market. Most entry level jobs pay little, and part time. Depending on the season they might have too many, or way too few hours to break even.
Instead of yelling about government regulation, how about people crack open a history book and learn why these regulations were implemented in the first place.
I love how people yell about the public education system costing too much, and then complain about those who can't budget well / live smartly.
(email verified)
Wed, Mar 12, 2008 at 10:07 AM
I like how people single out "liberals" as trying to "save us from ourselves". Slavery is illegal. Just because you want to be enslaved to a pay-day loaner, doesn't mean it should be legal. Payday loans are a terrible burden. They never crop up in rich neighborhoods, they don't help anyone who is poor. They are predatory lending at it's worst. There is nothing "conservative" about this.
You wanna talk about legislating an abondonment of personal responsibility, look at the damn car seat laws.
(email verified)
Wed, Mar 12, 2008 at 10:08 AM
I don't see any posts of people or businesses offering to jump in and start making these loans @ 36% because of the incredible profit potential. Any reason why?
(email verified)
Wed, Mar 12, 2008 at 10:19 AM
Fools and their money are soon parted. They'll just find another way to piss away their money and this will amount to nothing more than wasted breath and paper.
(email verified)
Wed, Mar 12, 2008 at 10:34 AM
"Tiffany Barnswell"
Obviously a loan shark... I mean "Pay-Day loan Agent"....
Post #4
Payday "Loan" agents are nothing short of predators…
(email verified)
Wed, Mar 12, 2008 at 10:42 AM
Lets not forget that the 36% interest is diluted by the large number of recipients who just default and vanish. How privileged do you have to be to not even grasp that some folks need these loans to get by. Probably the same ones who got these folks unemployed by supporting an increase in the minimum wage. Sad.
(email verified)
Wed, Mar 12, 2008 at 10:44 AM
For all you biblical peoples...
Remember what Jesus said about the moneychangers and usurers..
(email verified)
Wed, Mar 12, 2008 at 12:39 PM
If you look hard enough, these loan places are always close to establishments with video poker machines
I know, because I was a vid poker addict, and I know a LOT of people that have and are doing the same thing.
Loan money they dont have, and throw it back to the state of oregon through its video poker machines.
(email verified)
Wed, Mar 12, 2008 at 01:06 PM
Companies such as this don't fit in the scheme of proper capitalism. Rather than fair exchange, their business model is actually built around putting people into debt and building interest at an alarming rate. My father got into trouble with one of these companies, and in order to get him I out I wound up moving in with my parents and helping to pay the mortgage while they payed(more) on a ridiculous payday loan.
(email verified)
Wed, Mar 12, 2008 at 01:54 PM
Yes, these lenders are trash, without a doubt. But if no one used them, they wouldn't exist. You obviously can't get one of theses without a job,so you have income,what's the problem? Payday lenders are an answer to NOTHING. When citizens lack personal responsibility, you get garbage like this, people who exploit them. If your in a pinch, there are always other options.What did people do before payday lenders?
(email verified)
Wed, Mar 12, 2008 at 02:49 PM
There are a lot of dumb and irresponsible people out there. These loan shark businesses are only cutting a profit for themselves and are putting their customers in a very disadvantaged position.
These people need the government to step in and protect themselves from their own lack of responsibility. Yes, it requires them to budget, have a savings for emergency needs, etc but if someone doesn't take action to make them see that, when will they ever see it?
If you "need" to get a loan from these companies to cover expenses of any kind, you shouldn't be throwing your money on such an expense to begin with and going to such a place of business should be a sign.
The dumb and irresponsible will learn how to budget and maintain a savings plan, through government intervention. The government is only looking out for the well-being of its citizens. Uncle Sam loves you, and this is his tough love. <3
(email verified)
Wed, Mar 12, 2008 at 10:25 PM
Wonderful...it looks like the government is finally doing it's primary job of protecting people from themselves and the "scummy" payday lenders. Now if we can get rid of all the other PayDay loan places, people in desperate money situations will be incentivized to go back to more traditional means...like crime.
(email verified)
Thu, Mar 13, 2008 at 02:03 AM
Now everyone from Portland will just go to Washington to get the loan. We need to get Washington to pass a similar law.
Payday loans are leaching the lower income families. They prey on the people who cannot afford to pay back the loans. Every state should pass a similar law to get rid of Payday loans.
(email verified)
Thu, Mar 13, 2008 at 02:10 AM
I wish more states would pass this sort of legislation. Its sad that people take advantage of people in desparate situations. Not all the people who use them are people with poor money management skills. In a manner of a few years, both of my friend's parents died and his wife divorced him. When everyone you love leaves you, things like a house payment doesn't seem so important. So he ends up with bad credit. Well he runs a business (which I work for). He wasn't able to keep the lights on or pay rent for the shop. One of those loans was the only way he could stay afloat. He ended up paying it off after a reasonable amount of time. He admits he was an idiot for doing it. But when people get desparate, they do what they need to do.
(email verified)
Thu, Mar 13, 2008 at 02:17 AM
So many uninformed people around here, ridiculous. If you actually understood anything about business maybe you'd understand why they have to charge the rates they do. What do you think the profit margin is in payday lending? Advance America (a publicly traded company so it's easy to see their numbers) reported a 2007 profit margin of 7.67%. That's not great, McDonald's had 10.51%. Where are the calls to regulate how much they can charge for a Big Mac? People need to eat, don't they?
(email verified)
Thu, Mar 13, 2008 at 02:26 AM
if deadbeats would pay back their debts, then loan companies could charge a smaller interest rate. regardless though, nobody is twisting anybody's arm to take out these loans and as long as there is full disclosure, the only people to blame are the ones who go get these loans. "self responsibility" .. try it out sometime
on a side note, what the hay is an ARP?
(email verified)
Thu, Mar 13, 2008 at 02:35 AM
Why don't people get it? It's simple economics that was only reinforced by the failed policies of the 70's: When the government steps in to control prices (or borrowing rates in this case)...the service/product becomes short and then disappears. If the government forced you to charge less than was required to be profitable...what would you do? You shut down shop, of course.
Lets face it. Anyone who has any experience with those with poor credit will tell you that they got that way by not paying their bills/creditors. 36% to those with 575 FICO and below will be a losing proposition. Just ask the early lenders on Prosper.com.
What will happen when these Payday loan places go away? Will people with bad credit get to borrow at lower rates? Nope...they won't get to borrow at all! Why would lenders lend at such a rate where they are guaranteed to lose money?
(email verified)
Thu, Mar 13, 2008 at 02:37 AM
So now if my car breaks down & i have no short term cash,i will lose my job because you guys want to regulate them out of business?
I've never saw them making people go in at gunpoint & get a loan.
Visa charges 29% & i don't see anyone here complaining & i bet you all have a wallet full of that type debt right?
It's very ironic that payday places have to charge 30% becuse 20% never pay off the loans.
(email verified)
Thu, Mar 13, 2008 at 02:39 AM
The company is closing because it couldn't make any money at 36%..
DO YOU GET IT? The sorry ass people like the first 50 posts are the typical borrowers (victims) who blame everything on someone else.
(email verified)
Thu, Mar 13, 2008 at 02:42 AM
WORKIN' TWO JOBS , EATIN' BALONEY, SHE BE LIVIN' HIGH ON ALIMONY.
(email verified)
Thu, Mar 13, 2008 at 03:03 AM
@bamalucky: Most of the people posting seem to know better than to get such a loan in the first place bamalucky. Did you even read people's comments? Most people are glad they are closing because their business preys on the irresponsible poor. Maybe if you took the time to read the comments you would see that, but perhaps reading comprehension levels in Alabama are really low?
Many poor people are irresponsible and end up with much more debt by utilizing such services, as such, the government has stepped in and put a limit on the interest rate in an attempt to prevent more people from falling into debt with these pay-advance companies. The government recognizes that such a business is a pitfall for the irresponsible poor.
Now the business is leaving and the poor will be forced to take other measures when they need cash. Hopefully, they learn that saving is the best method.
@112233: APR is annual percentage rate (of interest). Try using google next time to figure it out.
(email verified)
Thu, Mar 13, 2008 at 03:06 AM
"Let no debt remain outstanding,"
(email verified)
Thu, Mar 13, 2008 at 03:07 AM
Uncle Sam, they don't prey on poor people...they "prey" on those with bad credit. You don't get bad credit by being poor. You get bad credit by spending money that you don't have. You can make $20k/yr and have spotless credit so long as you don't spend what you don't have. Having good credit opens up borrowing avenues.
Please explain to me what these people in "desperate" credit situations will then do when PDLs are no longer an option? Because they soon won't be at 36%. Many people simply won't be able to get them, because it's not profitable (actually LOSES money) for the lenders. What avenues will these people then have?
I'm pretty sure 112233 was being sarcastic. Misinformed people were earlier using the term "ARP". He was simply pointing out their ignorance, I would imagine.
(email verified)
Thu, Mar 13, 2008 at 03:19 AM
Has anyone ever been forced to take out a loan at 1 of these places?
You can't legislate stupidity.
(email verified)
Thu, Mar 13, 2008 at 04:17 AM
There has to be a balance between free market and the needs of a stable society. The problem with these pay day loan establishments is that by nature, they squeeze money from those who obviously lack it. They don't offer anything to society. If a person can't qualify for traditional credit to satisfy their needs, they should not be able to get a loan of any sort.
Those who are thiefs will not pass up stealing because they can get a pay day loan. That is a weak argument.
The regulations were set in place to control debtors soon after the founding of this country because of the rampant exploitation of the lower class.
(email verified)
Thu, Mar 13, 2008 at 04:35 AM
Has anyone ever been forced to take out a loan at 1 of these places?
You can't legislate stupidity.
"bamalucky"
Great point. Makes me wonder why people think the industry is "PREDETORY". I dont know of anyplace that goes out on the street, grabs people by the arm or leg, makes them write a check, and sing a contract.
Isn't a lion a predetor, they hunt?
(email verified)
Thu, Mar 13, 2008 at 05:11 AM
Douglas couldn't have said it any better. Its a fine line, but I think the government made a good call in limiting the APR.
@... : what other avenues will these people have/use?
-another job
-learn to save by living through a very hard lesson
-sell personal posessions that could be considered luxuries (ipods, cell phones, etc)
-borrow from a friend/family
The point is there aren't too many avenues to take, but certainly these pay day loans are not a viable choice to give most people due to their own irresponsibility. Ultimately, losing something valuable due to not having a savings should create an impact on their lives enough to learn to save for the future, no matter how small they may be able to. Everyone is able to save, no matter how little you make.
There was a story of a 23 year old who purposely moved into a homeless shelter with only $20 in his pocket. He did it to test the sturdiness of the american dream. His rules were he could not use his education to his advantage (he was a college graduate), he could not use any contacts he had, and he had to start from the $20 that he had in his pocket. His goal was to have a car, an apartment, and $2500 in savings after one year. Well, he had to quit his experiment after 10 months but he had a used truck, his own apartment, and $5,000 in savings.
That is why I said, some people are so irresponsible that the government must step in to help them in some manner. If they are left to their own device, they will surely plunge deeper in debt and bankruptcy, which is no good for our economy.
Lastly, I thought 112233 was asking a genuine question.
(email verified)
Thu, Mar 13, 2008 at 05:14 AM
not everyone who uses a payday loan is a deadbeat.
I'm sure all you judgemental people are so perfect and would never need to resort to any type of loan.
(email verified)
Thu, Mar 13, 2008 at 05:21 AM
"not everyone who uses a payday loan is a deadbeat."
Anyone who borrows money at 500% interest - and we're talking usually a few hundred dollars - has some serious cash management issues in their life.
I've had a time in my life where I didn't have enough money to pay my bills. The answer wasn't to borrow money that I could not pay back at 500%, but to cut back to the bare minimum, and work more.
(email verified)
Thu, Mar 13, 2008 at 05:28 AM
So long loan sharks!
(email verified)
Thu, Mar 13, 2008 at 05:35 AM
We need to stop blaming the payday lenders for everyone else's irresponsibility! If I borrow 100 bucks from a friend, and am not able to pay it back, I don't blame my friend for lending me the money! That is just stupid. So why are we blaming our payday lender friends for providing a great service? In a recent article by ex senator and presidential candidate George McGovern, he says, "[p]ayday lending bans simply push low-income borrowers into less pleasant options, including increased rates of bankruptcy," Mr. McGovern rightly poses the question: "Why do we think we are helping adult consumers by taking away their options?"
Later in the article, he says, "[t]he nature of freedom of choice is that some people will misuse their responsibility and hurt themselves in the process. We should do our best to educate them, but without diminishing choice for everyone else."
This is how we need to look at this topic. Leave the payday loan stores alone and look for other options. Instead of taking away payday lenders, beat them at their own game by giving consumers even more alternatives!
(email verified)
Thu, Mar 13, 2008 at 05:54 AM
ya whatever.. spoken like a person that only cares about one person.. themselves.. Not everyone is as perfect or as smart or maybe as rich as you Grant..
Bottom line, it's time for the predators that like to take advantage of the disadvantage to pay back!
(email verified)
Thu, Mar 13, 2008 at 06:39 AM
IN RESPONSE TO: Has anyone heard of free markets and limited government?
Let the buyer beware.
Milton Friedman: don't forget what Milton Friedman taught us. Free Markets.
Liberals want to protect us from ourselves again.
God help us from their evil
_______________________________________
there ain't nothing FREE about what these folks were pulling.. they are flipping criminals and glad they are outta here.
Liberals want FAIRNESS to all vs. FAIRNESS TO YOU!
(email verified)
Thu, Mar 13, 2008 at 06:43 AM
These folks prey on:
desperate poor
gamblers
mothers
fathers
emergency issues
Time to play fair. Our system was not meant to be played upon. It was meant to help others not help themselves.
(email verified)
Thu, Mar 13, 2008 at 06:54 AM
I have now seen 2 posts about the industry being predetory since I made my last post. Still no one can explain how payday loan companies are predetory. Again, I have never known them to drag someone in off of the street and make them do the loan and take the money.
I fell sorry for all of you that will belive anything you are told.
An interesting fact about the business: There is a 99.8% customer satisfaction rate. Can anyone let me know what other service industry has that rate?
(email verified)
Thu, Mar 13, 2008 at 07:50 AM
I have now seen 2 posts about the industry being predetory since I made my last post. Still no one can explain how payday loan companies are predetory. Again, I have never known them to drag someone in off of the street and make them do the loan and take the money.
I fell sorry for all of you that will belive anything you are told.
An interesting fact about the business: There is a 99.8% customer satisfaction rate. Can anyone let me know what other service industry has that rate?
(email verified)
Thu, Mar 13, 2008 at 07:50 AM
If anyone has this info...I'd be much obliged.
What percentage of people who take out a PDL end up spiraling out of control and owing thousands upon thousands? Conversely...what percentage of people get the service they desired and pay it off responsibly?
(email verified)
Thu, Mar 13, 2008 at 10:01 AM
I know when all the hearings going on in salem, before this bill was passed, there was 2 or 3 people that testified about how it ruined their lives. However, there were thousands upon thousands of letters from satisfied customers that were presented. That goes to show that passing this bill was all about politics.
(email verified)
Thu, Mar 13, 2008 at 02:22 PM
The following organizations clearly present the dangers of pay day loans:
-AARP
-Utah University
-Bankrate
-Bankruptcy Attorneys Nationwide
-Seattle PI
(I had links but my post didn't show up, probably due to those html links)
Officials everywhere talk about how predatory these businesses are. What part of they prey on the desperate and financially irresponsible don't you understand? Of course no one is holding a gun to their head but did you not see the words "DESPERATE" and "FINANCIALLY IRRESPONSIBLE" ????
Just because you have the attitude of, "they are adults, so if they end up in a worse off situation that's their fault" does not mean I have that. Overall, the pay day loans cause more harm than good. Why do you refuse to look out for the better of your fellow man?
Here is an excerpt from one of the links:
Addison Parker, a legal aid attorney with the Appalachian Research and Defense Fund of Kentucky Inc. doesn't argue that payday loan offices serve a need in her community, but he said many of the lenders' practices are illegal under current Kentucky law. The abuses include threatening to throw a borrower in jail for not making loan payments on time, Parker said.
Kentucky lender accused of racketeering
A federal judge in a Kentucky case brought by Parker's office agreed. Despite an attempt by the lender's attorney to have the case thrown out, the loan store stands accused of fraud, misrepresentation, racketeering and violating provisions of the federal Truth In Lending Act.
End Excerpt
There are horror stories of thousands of people falling into bankruptcy due to these services. It sounds like you just don't care. Shame on you.
(email verified)
Thu, Mar 13, 2008 at 11:57 PM
Predatory.. learn to spell. SO you have to read it from a news story to understand they are predatory.. now why oh why would they talk about themselves like that. They are the American way.. take from the poor.. make money off the backs of the workers.. same old crap. Anyone who has ever been there themselves are the only ones that could bother to tell you the stories. But you probably are one of them making the money off the less fortunate.. OMG.. I am being a liberal! How awful of me to think about other people! Shame Shame.. Let's just all go blind.
(email verified)
Fri, Mar 14, 2008 at 01:13 AM
Uncle Sam...I have no problem with enforcing the law. Racketeering, fraud, etc...enforce it. But, how does applying a mandated cap on APR fix those problems? It doesn't. If someone breaks the law...prosecute them...don't run the entire industry out of business.
How can you possibly quantify that they have caused more harm than good? What percentage of customers have been "ruined" or significantly damaged. Unless you can quantify that statement...it's pure speculation.
(email verified)
Fri, Mar 14, 2008 at 02:52 AM
@... : A quick google search turns up plenty of articles that I unfortunately cannot link here, or else the post never shows up. Instead I'll post some excerpts that have some very important points:
Excerpt 1
The costs to borrowers become extremely prohibitive as borrowers extend, or “rollover”, their payday loans. Arizona state law has a maximum chargeable APR of 36%, but the payday lending industry uses loopholes that allow it to charge APRs of 500% or higher.
Arizona District 25 state Rep. Manuel Alvarez says, “I won’t say payday lenders are directly targeting a certain demographic, but they are making it much easier for low-paid people to get into debt they can’t handle.” Alvarez was referring to the high number of seniors “caught in the trap” of rolled-over payday loans. He also says that the rise in the state’s bankruptcy rate from 2000-2003 is partly due to payday loan customers not paying off their loans in the first 2 weeks. Alvarez is pushing a bill that would eliminate rollovers.
Also, an Indiana study of payday lenders showed that 91% of borrowers renewed loans at an average of 10 times per customer. They say the high fees force borrowers to renew their loans.
END EXCERPT1
91%! Can you belive that, renew 10x.
Excerpt 2
Even with consumer protections like personal bankruptcy and Welfare available in the United States, many families are finding themselves overwhelmed by debt incurred from payday lenders.
And, thanks to the Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) passed in 2005, qualifying for Chapter 7 bankruptcy-which allows debtors to discharge much unsecured debt- is now more difficult than ever.
Many payday borrowers end up as habitual borrowers, with ever-increasing balances due and little hope of paying off their full debt.
END EXCERPT 2
Excerpt 3
CFA's survey of 100 Internet payday loan sites showed that loans from $200 to $2,500 were available, with $500 the most frequently offered. Finance charges ranged from $10 per $100 up to $30 per $100 borrowed. The most frequent rate was $25 per $100, or 650% annual interest rate (APR) if the loan is repaid in two weeks. Typically loans are due on the borrower's next payday which can be a shorter term.
Only 38 sites disclosed the annual interest rates for loans prior to customers completing the application process, while 57 sites quoted the finance charge. The most frequently posted APR was 652%, followed by 780%
Contracts from payday lenders include a range of one-sided terms, such as mandatory arbitration clauses, agreements not to participate in class action lawsuits, and agreements not to file for bankruptcy. Some lenders require applicants to agree to keep their bank accounts open until loans are repaid. Others ask for "voluntary" wage assignments even in states where wage assignments are not legal.
END Excerpt 3
@Rachel: I have no clue who you are responding to.
(email verified)
Fri, Mar 14, 2008 at 03:22 AM
Excerpt 4
A consumer advocate group called Southwest Center for Economic Integrity, headed by Karin Uhlick, executive director, says "83% of payday loan locations are within a 1/4 mile of high-medium stress areas, compared to credit unions at 69% and banks at 56%. And 67% of payday-loan locations are within 1/4 mile of high-poverty areas, compared to credit unions at 51% and banks at 34%". Uhlick says they’re also targeting seniors on Social Security, and the working poor.
Julian Bond, Chairman of the Board of the National Association for the Advancement of Colored People (NAACP), says, “Visits to payday lending stores, which open their doors in low-income neighbourhoods at a rate equal to Starbucks openings in affluent ones, are threatening the livelihoods of hard-working families and stripping equity from entire communities. The NAACP is dedicated to eliminating payday (lending), because wealth-building and saving for the future are vital to the economic success of communities of color.”
END Excerpt 4
Your thoughts? The excerpts speak for themselves.
(email verified)
Fri, Mar 14, 2008 at 03:31 AM
"How are the predatory?"; they are not overtly so. However, by their fundamental nature they compound the problem that they are suppose to solve. By providing such high interest loans, they put people who are poor in a situation where they have unreasonably less.
You are right, no one forces consumers to take these loans. However, if you put food in front of a starving man, they will take it.
"We have come to a clear realization of the fact that true individual freedom cannot exist without economic security and independence. 'Necessitous men are not free men..."
- Franklin D. Roosevelt
(email verified)
Fri, Mar 14, 2008 at 03:47 AM
Uncle Sam...that does not tell me anything. Saying a "high number" of people are caught up in it does not provide any insight. A "high number" of people have their lives ruined/ended by irresponsible use of cars...but does that mean that they do more harm than good? No...because it's a relatively small ammount in th relation to the total users.
And how is it so shocking that they would set up shop near their primary customer base?
(email verified)
Fri, Mar 14, 2008 at 03:57 AM
Most people don't need a payday loan, but when they do they should have the option. Now because of lobbying (paid for by your bank) Oregonians that find themselves with too much month left at the end of their paycheck, have fewer options. Now they can write hot checks to cover car repairs, groceries, prescriptions, etc. Oh, but now they have to pay bounce fees...hmmm my bank charges $35.00 and the recipient of the bad check can charge $25.00. That check may only be for $20.00. Guess what that interest rate is annually? And God forbid if I have to write more than one hot check. It is not up to government to protect us from ourselves and based on the aforementioned example it should be clear to all of you, that they aren't any smarter than the rest of us. Is constant borrowing from payday lenders a good thing....of course not. Is forcing people to pay their banks even larger fees (essentially userious interest payments) a good thing...heck no. So before you applaud the demise of "the evil payday lender", think about this. Why are the banks now able to put branch locations at almost every corner and stock them with tellers, loan clerks, etc. Because they make far more money off of you than the payday lenders. And they own your house...that is a far scarier reality than 391% interest on a two week $300.00 loan. Wake up Oregon, goverment isn't set up to be our savior. And I'll tell any politician that thinks they "know better" than the people, what's best for them, that they need to find a new job.
(email verified)
Fri, Mar 14, 2008 at 07:07 AM
http://www.ftc.gov/bcp/conline/pubs/alerts/pdayalrt.shtm
This link should help with how fraudalent these folks are.
And shame on the people that hide behind the old govt. should not tell me what to do argument.. You probably are the same type that think the FISA bill is ok though right? And you probably think it's ok for the govt. to spy on us still right? And you think it ok for the bill of rights to be changed by the govt. but if the govt. is doing something for the people instead of against them than you are up in arms!
(email verified)
Fri, Mar 14, 2008 at 07:09 AM
Rant, how can they be fraudulent if they disclose EVERYTHING??? Fraud = intentional deception resulting in injury to another person. If it is fully disclosed it can't be fraud. The injury may still occur if the person isn't wise in their decision making process, but hey, we've all made bad choices and hopefully learned from them. I don't believe that limiting peoples options is ever a good thing. Have you read anything about bank fees lately. Yet they are legal. Maybe the payday loan companies should just call them pre-bounced check fees and join the banks in their profit boom. So which bank do you work for or are you enslaved by? :)
(email verified)
Fri, Mar 14, 2008 at 07:28 AM
I definitely DO NOT work for a bank I can promise you this. I have though been poor and I see where it can lead a person. As one of the previous responses:
You are right, no one forces consumers to take these loans. However, if you put food in front of a starving man, they will take it.
That's a big slice of it right there.
(email verified)
Fri, Mar 14, 2008 at 07:40 AM
AND you can be poor for many reasons:
HEALTH and lack of benefits
ACCIDENT and lack of benefits
MENTALLY ILL and lack of benefits
IMMEDIATE JOBLOSS and lack of benefits
You have to look at the whole picture and come out of the tough tunnel vision.
Why do people want to stick up for corporations over people is my question? Are you not a person? Or are YOU the corporation that is in question here?? That would be a better question than what you asked me.
(email verified)
Fri, Mar 14, 2008 at 07:42 AM
For all you morons out there that think the Goverment should be setting the pricing for loans, think about this. Mortgage loans and gas prices. Now stop and think about it.
(email verified)
Fri, Mar 14, 2008 at 08:34 AM
Ya my hunch is that they could not make enough off of the payday loans so they kicked them out.. before the next election to see how much of a slice the govt. had taken already..
just working off the backs of all of us..
Good riddance either way..
(email verified)
Fri, Mar 14, 2008 at 08:58 AM
Ad for them should read:
Are you working your back off and needing to get paid right away? Well have no fears, we will work off your back for you and lend you more money than you could ever hope for..
Bahahaha
(email verified)
Fri, Mar 14, 2008 at 09:08 AM
Good do not stop there finish with all the porn shops, topless bars and Dotty's. Then start public hangings of car theifs, and all criminals. Lets clean house!!!
(email verified)
Fri, Mar 14, 2008 at 05:21 PM
Sam's posts are the closest to the truth. Its a shame how many of you have your heads buried in the sand or are so hopeless/helpless you want the government to care for you from cradle to grave.
The greatest thing about living in America is freedom. Please stop taking it away from us.
(email verified)
Sat, Mar 15, 2008 at 09:04 AM
blah blah.. old argument blah blah.. ya just turn the other cheek in regards to corporations taking advantage of folks that have no choice sometimes.. easy for you to do I am sure.. Just go for what you want.. that's the american way... Where are you though when they are taking away our rights? That's ok for the govt. to do right?
(email verified)
Sat, Mar 15, 2008 at 09:22 AM
"sick of hypocrites making excuses for only caring about themselves"
Corporations are nothing more than the people who work for them and the people who have ownship in them, in other words Corporations are the people you claim to care about.
You say these people (corporations) are taking advantage of people that have no choice sometimes. Well, I guess you want them to have fewer choices. You are the one taking away the right's of people who want to take out payday loans and those who want to be in the business.
blah blah blah, same old liberal solution. If you want to help these folks who seek high risk credit, you should loan them your money, or is there too much risk in that for you.
(email verified)
Sun, Mar 16, 2008 at 01:19 PM
Nice logic.. but it is too simple and makes no sense.
Go ahead and continue to support corporations that like to take advantage of people vs. concern for the people that have little choices and probably because of some other corporation that stiffed them out of a good job/bennies/good pay.
If corporations were people than they would have to be liable just like you and I when they break the law. They are not.
(email verified)
Mon, Mar 17, 2008 at 02:27 AM
Get a clue needs to get a clue.
You might ask Andrew Fastow, 6 year prison sentence, and Jeff Skilling, 24 year 6 month prison sentence, if they were held criminally liable for their corporate conduct with Enron.
Simple isn't it. Get a clue is wrong.
(email verified)
Mon, Mar 17, 2008 at 06:51 AM
Browse archive
The Portland Tribune
News feed
Find a paper
Enter a street name
or a 5 digit zip code
Our Portland website design and marketing company created custom websites for these top providers of Portland pest control services, Portland cleaning services and Portland florists.
Search engine marketing, website templates, portland web design and website promotion by Webfu // 503.381.5553
New down and fleece north face jackets. The largest selection of North Face Jackets available online. Free shipping on orders over $40.00
See the latest styles of ski jackets and backpacks from The North Face.
Bastyr University Open House, Spring 2010. Discover a career in natural health, Tour campus & clinic, meet faculty & students. Check the dates & RSVP >>
Facebook
Digg
Del.icio.us
Newsvine
Stumbleupon
Reddit
Re: Payday loan company closing Oregon stores
Good Riddence!
Payday loans are parisites on the poor!
Yay!!!!!
"Once I was poor, but then I learned..."
(email verified)
Tue, Mar 11, 2008 at 09:24 AM