Payday loans are a better option for some people
The Bellefontaine Neighbors City Council shouldn’t be interfering with the personal finances of its constituents (“Ordinance tightens payday loan rules,” Nov. 13). Taking away credit options like short-term payday loans will only hurt consumers.
Council members fail to realize that when short-term payday lenders close their doors, their customers are often forced to resort to less desirable and more expensive alternatives to make ends meet.
Just this week, an article in the New York Times Magazine highlighted the difficulty of accessing consumer credit facing many Americans. The article took a balanced look at the services offered by short-term payday lenders, finding that payday loans are a valuable financial tool, since they offer easy-to-understand conditions, with “no surprises, no hidden fees,” unlike many banks. On the heels of the Times article comes a Dartmouth College study looking at a 2007 payday lending ban in Oregon. They concluded that banning financial options ended up hurting Oregon borrowers, and forced them to turn to inferior substitutes like bounced checks.
Tim Miller
Center for Consumer Freedom
Washington D.C.
What’s this I detect, a pro-freedom voice from the woods? Tim, you are a very rare thinker, in contrast to the parades of emotionally driven. What must be observed is that there’s no force when I go for a payday loan; I’m free to enter the agreement or reject it at the outset. Payday loans can’t make me walk in and sign a paper.
Tim Miller, Center for Consumer Freedom:
“The Bellefontaine Neighbors City Council shouldn’t be interfering with the personal finances of its constituents (“Ordinance tightens payday loan rules,” Nov. 13). Taking away credit options like short-term payday loans will only hurt consumers.”
Perish the thought that people should live within their means, budgeting and spending accordingly. There are always unexpected expenses in life but distress can be avoided by saving a portion of income to cover them, then some belt tightening to replace the unexpected expenses when they occur.
Too many people are so excited receiving a loan, they give no thought to the reduction in their level of living standards when required to repay. The only thing dumber than payday loans are pawn shops. If you can give an item up for loan collateral, (excluding filched items acquired by midnight requisition) you didn’t need it that bad in the first place.
Dear Mr. Miller,
Although I pride myself on my verbal acuity, I am completely lost as to how to begin to tell you what a jerk you and your organization and the horse you came in on are. They’re are so many reasons and too few words to make a serious attempt. To state ” that when short-term payday lenders close their doors, their customers are often forced to resort to less desirable and more expensive alternatives to make ends meet,” is ludicrous on its face. There are no less desirable and more expensive alternatives than payday lenders. To even suggest, to have the unmitigated gall and audacity to compare your fleece shops to legitimate financial institutions is like defending the esoteric artistry of lap-dancing. Calling your sleazy outfit “Center for Consumer Freedom” is like calling the Ku Klux Klan “Center for Alternative Energy (cross burning).” You, sir, are a hyena.
Anachronistic Sage,
When consumerism has graduated to the corporate level, replete with slick advertising that borders on psychological warfare (if you don’t buy our Acura, you’re a loser), no amount of Franklinesque bromides on thrift can offer much relief. To save a penny, one must first have a piggy bank. To put it another way, “when your outgo exceeds your income, your upkeep will be your downfall.”
While I’ve never used a PayDay loan I have no problem with the business. For everyone who is against PayDay loans, try this. Go to your local bank and attempt to borrow $50 for two weeks. See what the bank charges, if they will even make the loan.
Commander, banks are far lower on the scum meter than payday loan shops. A common bank practice is to “cover” overdrafts so the client doesn’t get hit with returned check charges. This “service” costs around $30 a pop. One math challenged young lady used her debit card at Subway 3 seperate times. Each $6 meal ended up costing her $36. She would have been much better off going to the Payday loan shop, getting $100.00, then returning one week later with $120.
This is Tim’s Web Site…. make your own decisions about him and his “company” supported group
http://www.consumerfreedom.com
I agree on the Payday Loan business getting the bad rap. Miss a few payments on your Visa, Mastercard, Amex, etc. You will pay +25% interest in a heart beat (don’t forget you also pay interest before principle) which makes the tag on late fee seem cheap.
Amazed,
I concur with your assessment of banks. I would also throw in credit card companies, and just about all other forms of commercial lending at the personal individual level. Does anyone believe these companies perpetrate these nefarious practices on other companies? This special treatment is reserved for the poor slob on the street. As my Uncle Ted used to say, “shoot ‘em all and let God sort ‘em out.” Of course, he was drunk at the time.
Commander, if you are an ignorant in this world, there are a bunch of people looking to take advantage of you. How to stop it? Don’t be an idiot and you won’t be taken advantage of.
Except taxpayers. Only segment that may not all be idiots but get taken advantage of by our elected officials.
Have we not heard of loan sharks before?. The people prey on the weak and the underclass of society. Pass a law where they have to make loans with no interest.