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Consumer Protection Agency Seeks Limits on Payday Lenders

Pay day loans

  • Regulate - Yes

    Votes: 36 81.8%
  • Regulate - No

    Votes: 7 15.9%
  • No opinion

    Votes: 1 2.3%

  • Total voters
    44

JANFU

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My opinion -Pay day loans prey upon the poor- but where else can they turn - banks- forget it.
http://dealbook.nytimes.com/2015/02...agency-seeks-limits-on-payday-lenders/?ref=us

In the world of consumer finance, they are chameleons: payday lenders that alter their practices and shift their products ever so slightly to work around state laws aimed at stamping out short-term loans that can come with interest rates exceeding 300 percent.

Such maneuvers by the roughly $46 billion payday loan industry, state regulators say, have frustrated their efforts to protect consumers.
 
I agree they need to be tightly regulated with strict enforcement.

Soon conservatives and libertarians will be here to claim that corporations only behave badly when the government forces them into it with their regulations.
 
For people with bad credit, no collateral, needing money in an emergency, they serve a purpose.
 
For people with bad credit, no collateral, needing money in an emergency, they serve a purpose.

You left out people with gambling issues. There are LOTS of them using these services.
 
For people with bad credit, no collateral, needing money in an emergency, they serve a purpose.

That is a reflection on bank policies and an inability to access short term loans or even low credit lines.
They are being picked over by vultures.
 
they are pariah's

but if there was no need, they would disappear

so it is another case of the government stepping in, saying "we know what is best for you"

personally i hate these, and car loan title shops

they both give lending a really bad name

but we have too many people who cant/wont control their finances themselves, who use these predatory lendors
 
You left out people with gambling issues. There are LOTS of them using these services.

I'm sure I left out a lot of people with a lot of issues. People with gambling issues who have collateral, good credit, even 401Ks they can borrow from don't need to take payday loans. A payday loan is usually the last resort, and most states have payday loan ceilings which wouldn't cover any major gambling debts.
 
That is a reflection on bank policies and an inability to access short term loans or even low credit lines.
They are being picked over by vultures.

Banks don't make loans to people who are massive credit risks. And anyone with good credit can get short term loans and credit lines.
 
Banks don't make loans to people who are massive credit risks. And anyone with good credit can get short term loans and credit lines.

Years ago a bank manager had the authority to make loans on the spot. That has changed. Now the info is input, goes thru a process, the program used by the bank, rates as a poor risk, loan /line of credit denied.
Just the facts.
 
Years ago a bank manager had the authority to make loans on the spot. That has changed. Now the info is input, goes thru a process, the program used by the bank, rates as a poor risk, loan /line of credit denied.
Just the facts.

Bank managers still have lending authority on the spot is that's the bank's business model, which it is for most community banks and credit unions. That doesn't have anything to do with payday lending though. Banks can't and won't make high risk loans anymore.
 
My opinion -Pay day loans prey upon the poor- but where else can they turn - banks- forget it.
http://dealbook.nytimes.com/2015/02...agency-seeks-limits-on-payday-lenders/?ref=us

In the world of consumer finance, they are chameleons: payday lenders that alter their practices and shift their products ever so slightly to work around state laws aimed at stamping out short-term loans that can come with interest rates exceeding 300 percent.

Such maneuvers by the roughly $46 billion payday loan industry, state regulators say, have frustrated their efforts to protect consumers.

Long ago issue here...

Regardless of whether they prey on the poor, addicted, gambing addicted, sex addicted or stupid, money begs regulation. Evidence has shown usury rates of 200% and collection techniques that would peel paint.

It is not only a problem for the poor and addicted, but employers who employ them as they are now getting 15 to 35% less than what you pay them. People worried and hungry are not good workers.

The economic cases alone proves the need.

Should Washington, prone to shut down for political purposes and maneuvered by lobbyists be the ones to regulate? I am not sure
 
Bank managers still have lending authority on the spot is that's the bank's business model, which it is for most community banks and credit unions. That doesn't have anything to do with payday lending though. Banks can't and won't make high risk loans anymore.
These people pay back, the numbers show a high rate of return- why else would these vultures survive. The banks will have nothing to do with them.
I know a number of bank managers as friends - I am not speaking from the cuff.
There is no real money in these people and they have no where to turn except the vultures.
 
Link please.

Gambling and Payday Loans
BBC Sport - Gambling footballers take out payday loans - Sporting Chance

I also did the books for a payday loan chain for a while.

Also, if you're really a glutton for punishment, try some of the links in this search - https://search.yahoo.com/yhs/search;_ylt=AwrTccAeNdlUi7IAsnMnnIlQ?p=is+there+a+link+between+gambling+and+payday+loans&ei=UTF-8&hsimp=yhs-001&hspart=mozilla&b=11&pstart=5

Fair warning, most of them are to sites soliciting payday loans specifically to gamblers.
 
Long ago issue here...

Regardless of whether they prey on the poor, addicted, gambing addicted, sex addicted or stupid, money begs regulation. Evidence has shown usury rates of 200% and collection techniques that would peel paint.

It is not only a problem for the poor and addicted, but employers who employ them as they are now getting 15 to 35% less than what you pay them. People worried and hungry are not good workers.

The economic cases alone proves the need.

Should Washington, prone to shut down for political purposes and maneuvered by lobbyists be the ones to regulate? I am not sure

Not sure in the US but they would have a Banking Act? Lending of monies- the worst case would be leaving it to the States- Canada left it to the provinces and still an issue here.
 
These people pay back, the numbers show a high rate of return- why else would these vultures survive. The banks will have nothing to do with them.
I know a number of bank managers as friends - I am not speaking from the cuff.
There is no real money in these people and they have no where to turn except the vultures.

The banks' lending policies are getting scrutinized by, regulated by, and clamped down on by the CFPB.

I don't need your anecdote about bank managers being your friends. I've been posting about the CFPB and banking for 2 years. I know it intimately, and not through friends who work as managers in branches. I'm speaking from real world and very deep understanding.

The banks aren't the monsters here, nor is it their fault that people turn to payday lenders. And regulating payday lenders out of business is only going to hurt the people who rely on them for cause and as the last resort.
 
Gambling and Payday Loans
BBC Sport - Gambling footballers take out payday loans - Sporting Chance

I also did the books for a payday loan chain for a while.

Also, if you're really a glutton for punishment, try some of the links in this search - https://search.yahoo.com/yhs/search;_ylt=AwrTccAeNdlUi7IAsnMnnIlQ?p=is+there+a+link+between+gambling+and+payday+loans&ei=UTF-8&hsimp=yhs-001&hspart=mozilla&b=11&pstart=5

Fair warning, most of them are to sites soliciting payday loans specifically to gamblers.

Fair- Percentages of the usage would be good- these companies targeting gamblers are still in business- must work- not all that use PD Loans are gamblers-
 
You left out people with gambling issues. There are LOTS of them using these services.

So it's now the payday loan places to blame for a gambler's inability to control themselves? Seriously? :roll:
 
Fair- Percentages of the usage would be good- these companies targeting gamblers are still in business- must work- not all that use PD Loans are gamblers-

I never said that the all were. All I said is that gamblers tend to make up a significant percentage of the clientele.
 
That is a reflection on bank policies and an inability to access short term loans or even low credit lines.
They are being picked over by vultures.

At one time banks issued short-term, low-cost loans to people who little or no collateral. Today they do not. The risk was simply too high. The people who use these loan places have no other options. If you want to eliminate them altogether, what do you suggest the poor do?
 
I never said that the all were. All I said is that gamblers tend to make up a significant percentage of the clientele.

But that makes no sense, again, because most states have very strict rules on maximum amounts of payday loans, and I think the highest amount is $1500. Gamblers make up a percentage, but so do smokers, shoppers, people with cars, gum chewers, etc.
 
So it's now the payday loan places to blame for a gambler's inability to control themselves? Seriously? :roll:

Nope.

People that are hooked on gambling or drugs or whatever else tend to make bad decisions anyway. They don't need a whole lot of additional help in that direction.

My contention is that a lot of people who use these services don't really need to. Many of them, if not most of them, could avoid the whole thing if they simply made some better personal financial decisions.

It's life and there's a pretty heavy tax on "stupid". These places are part of that tax.
 
Not an excuse hit them with 300% interest rates.

They are not a 300% interest rate, that's utterly absurd and a complete lie, cooked up by opponents. They are usually 2 week loans meant to get you through to your next paycheck. Last I was aware, the highest loan allowable by law was $300 with a $40 fee attached. You got $300, you had to pay back $340. Where do you get the idea that $40 is 300% of $300?
 
At one time banks issued short-term, low-cost loans to people who little or no collateral. Today they do not. The risk was simply too high. The people who use these loan places have no other options. If you want to eliminate them altogether, what do you suggest the poor do?

Why did the banks change their policy? I believe I answered it in an earlier post.
What do you suggest?
 
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