At the heart of the issue is the business model that payday lenders use to make money in the industry. The loans that they extend to consumers must be paid back within a two week period, which is often not long enough for the person to earn the additional money needed to pay back the entire loan, resulting in a cycle of borrowing new loans to pay off the old loans. Experts estimate that the majority of the individuals that take out a payday loan get trapped within this cycle of debt, taking out an average of 12 loans throughout the year and paying the payday lender hundreds of dollars in interest for the loan.

Another issue at the heart of the problem is the interest rate that the payday lenders are charging to consumers for taking out the loan. The payday lenders argue that their loans come with terms of $15 for each $100 taken out as a loan, which is not an excessive amount by their calculations. When calculated as an APR, which is currently the only legal way to represent an interest rate applied to a loan, the lenders are charging their consumers 391% interest on the loan, an amount that lawmakers say is exorbitant and wildly unfair to consumers.
=================================================================

ALLEN

Payday loans up to $1500 in as little as one hour.

Payday Cash Advance Loan

JustinB, any parent can get the necessities for their children at the food bank ..including diapers. Paying rent or utility bill should not be any problem to contact the service provider and arrange the late payment.. oooh wait, unless of course they have over abused that privileged then by all means let them get so far beyond their means that they simply no longer have means at all. Payday loans are an outrages scam to make the rich richer… and darn it that I didn’t think of the clever idea first!

I find it ironic that liberals, who used to argue vociferously against the regulation or banning of XXX-rated movie theaters, strip clubs, etc. by noting that no one stood outside such establishments forcing the unwilling inside at gunpoint, are now taking exactly the opposite tack in arguing for the regulation or elimination of so-called “predatory lenders,” when clearly their earlier arguments apply here as well.

Makes me wonder if anyone on the Left even knows how to think anymore.

Please point out one person that has ever been “addicted” to payday loans. See, millions of people are addicted to gambling. We just prohibited offshore sports books and online casinos.

My question is this–why not start with a Federal prohibition on all forms of gambling. Let’s start by shutting down Vegas, Atlantic City, state lottos, bingo parlors, and most importantly INDIAN CASINOS. The Indian Casinos were behind the Abramoff scandal. Talk about corruption.

Cigarettes and Alcohol are bad for the poor too. Ever see a rap star walking around buying his grilz with money from the payday loan place? Nope, but he is puffin’ on a blunt and gots him a fo-dy. Bitch has a 9 unda the seat too, jus in case shit goes down. Let’s ban guns, alcohol, tobacco, payday loans, and gambling all at once.

But if we did that, Edwards and the lawyers couldn’t sue gun manufacturers, cigarette companies and so on. The problem Edwards has with payday loans places is that he hasn’t figured out how to sue them and channel a dead baby into saying the payday loan place caused her death.

Of course we should. Usery has historically been illegal because it leads to indentured servitude which is not good public policy.

Yes, Yes, Yes, Justin I don’t have any problem with businesses of this sort. I can’t say I would recommend them but I would recommend the money making side of the business. I have nothing at all against making a profit if people are willing to pay. Just the same as I wouldn’t complain if Sam Walton was my relative.

Lestat: “Usury”(the correct spelling) is a medieval term for “loaning money at interest”. It was coined by the Church of the time, and was a product of the economic ignorance of the time. In your case, it’s still true. You Marxists just don’t get it. It’s a transaction freely entered into by both parties. Get a life and an education.

Those who enable poor choices are just as responsible as those who make poor choices.

Shut down the bars because they enable drunk driving.

Those 0% credit cards that mention in the fine print that the rate can be raised to over 20% after a year seem pretty predatory.

Legalized loan sharking.

One point of clarification:

Virginia’s “over 80/over 20″ reckless driving statute has been on the books for over five years – this is not a new provision of the law. Reckless Driving by Speed is a Class 1 Misdemeanor, meaning a maximum penalty of $2,500.00 fine, twelve months in jail, or both, plus court costs.

Bat: Actually, those who preach equality of outcome and entitlement to everything without earning it are the enablers of those who make poor financial decisions that lead them into debt.
Of course, the lefties always infantilize their favored groups, who, in their view, cannot survive without their help.

Those who enable poor choices are just as responsible as those who make poor choices.

Should conning old people be illegal?

You mean Indian Casinos or Las Vegas?

These are just businesses. If there was no demand for their “product” they would not be in business at all. Long story short? Don’t get one of these loans for more than 1/2 the amount of your next paycheck, interest included. Don’t follow that simple rule and you will get eaten alive.

Lots of people, for one reason or another have bad credit and no bank account. Payday loan brokers and pawn shops and liqour stores are the only alternative for cashing checks and acquiring loans open to them, until they rebuild their credit at least.

Issues that haven’t been broached here:

1. The reason that you have check cashers and payday lenders charging high fees in bad neighborhoods is because banks justifiably don’t want to do business there. They’re tired of getting shot up, and there are no good business prospects there.

If you want to put payday lenders out of business, hire more cops and support them. Then the banks will establish branches and put payday lenders and check cashers out of business.

2. Edwards is wrong about them “just moving.” The clientele of such businesses simply cannot up & go to the next state to make dumb economic decisions; really they cannot really leave their own neighborhood because of those dumb decisions. That’s why you only find payday lenders in the “down” side of town. A city ordinance would suffice to regulate most payday lenders.

Accepting responsibility is free and there is no excuse for the “proletariat” to lack this virtue.

Anna, you forget that we enable them to shirk responisibility. Every time the poor need something, we create a program to provide it to them. They have devolved to the point that they have forgotten how to take care of themselves. We need to stop bailing them out and they will be forced to make good choices.

Should conning old people be illegal?

I think you are all missing a major point here. We can all debate whether payday loans should be regulated or outlawed or left as is, but what really bothers me about the quote is that Edwards wants a federal law for something that has always been the domain of the state.

Of course, this typical Dem economic ignorance, and from the Marxist candidate to boot. Edwards, like all other Marxists, doesn’t understand the market, which exists to supply all existing demand. If these folks could get credit at a lower rate, they would, but considering the risk involved, their interest rates are what they should be. After all, no one is forcing them to get credit. Most of this is for invaders, anyway, who should go home. When Edwards tries to rig the market for credit, we all suffer.
Everything he does is political grandstanding, anyway. Why doesn’t he loan his own money out to these people, and charge what he thinks is proper interest? No one is preventing him from doing that.
Marxists just don’t understand financing, and think interest is “evil”. Go figure.

Payday loan companies are basically Legal Loansharks.

The only difference is you won’t get knee-capped if you don’t pay.

So long as they don’t physically hurt anyone – payday loaners, loan sharks, bookies, and anyone else that benefits from so-called victim-less crimes should be allowed to rip whomever they want off.

No Lestat, above they were compared to bookies and loan sharks. I made a comment that the left needs to tackle gambling too and they seem to agree. At least Dorgan does.

Point is that bookies are illegal in most states so people go to online casinos or travel somewhere so they can gamble. Lotteries are legal so they go there instead. There are options. But what options are available when your car breaks down between paydays and you need $100 to get it working so that you can make it to work until the next payday? If you have other unpaid bills, a low credit rating, no assets, etc., you don’t have options. So you pay much higher rates than a good credit risk. Payday loans and subprime mortgages as well as pawn shops offer a service. Let us not forget that. If not for them, people may not be able to buy a house or pay their bills. The people are in the situation in the first place because they either lack job skills or financial management skills to avoid the situation.

But back to gaming–this from five days ago:

http://www.indiancountry.com/content.cfm?id=1096415389

Posted: July 12, 2007
by: Jerry Reynolds / Indian Country Today

WASHINGTON – Gaming, again? That was one reaction to a Senate hearing on tribal casino gaming June 28. Sen. Byron Dorgan, D-N.D., chairman of the Senate Committee on Indian Affairs, offered a ”discussion draft” of a bill that would further regulate Class III gaming through amendment to the Indian Gaming Regulatory Act of 1988…

Kurt Luger, executive director of the Great Plains Indian Gaming Association in Bismarck, N.D., said he was ”absolutely, very surprised” by the hearing. The problems of regulatory authority in Indian gaming had been hashed out in the previous Congress, he said, when Republicans were the majority party and both chambers, the Senate and House of Representatives, hosted efforts to overhaul IGRA. With Democrats narrowly in the majority now in the current Congress, ”We thought we would be able to not have to deal with this [in] this session,” Luger said in an interview after the hearing.

Should conning old people be illegal?

Well, “conning” people implies trickery. If you’re asking me if I think committing fraud should be illegal, then yes.

But what’s illegal about a Payday loan? If you go to a payday loan broker and enter into the terms of a loan of your own free will, knowing full well the terms, that’s hardly fraud or trickery.

Stupidity, perhaps, but I think people should be free to be stupid if they want to be.

The regarding contents of this post is truly looking most informative about Payday loans. And this one really increases my amount of knowledge about it. According to me, payday loans is the superb way to live life. Because of every person get emergencies. And the payday loan providers really provide the best of relief to borrower to fight the emergency. The main thing is there not any type of credit checking to get this loan. And the requested amount is automatically deposits in our account. Thanks for sharing some best of information about it.

lenders for payday loans