Activists Take Aim at Payday Lenders

[Viva_La_Revolution]

I've posted this in the Oregon forum, but I would like to hear from others around the country. Is anyone in your state taking them on? These bottom feeders are helping to destroy families all over the country.
I have had several members of my family go to these sharks, and it took forever for them to finally get rid of the debts.


Activists Take Aim at Payday Lenders

By BRAD CAIN
Associated Press Writer
SALEM, Ore. - Community activists, union leaders and church groups are banding together to promote a measure for November's ballot to limit the loan rates charged by payday lenders throughout Oregon.

The payday loan industry has been growing rapidly in Oregon to satisfy the public's demand for short-term loans. But backers of the initiative measure say a new state law is needed to protect people from lenders who at times charge more than 500 percent interest.

To help bring about such a change, the Our Oregon coalition is teaming up with the main state chapter of the Service Employees International Union, Ecumenical Ministries of Oregon, the Oregon Food Bank and other groups to place the measure before voters this fall.

"We're going to have a huge volunteer program on this. People are very excited about it," said Patty Wentz of the Our Oregon coalition, which filed the initiative to cap most payday loan annual interest rates at 36 percent and loan origination fees at 10 percent.

lots more at the link - http://www.katu.com/news/story.asp?ID=83485

[AnneD]

1. It's about time...

they do nothing but take advantage of the poor and the military....

[ThoughtCriminal]

2. Bush economy has brought growth

Invest in Human Suffering - it's a bull market!:

Payday loans
Pawn Shops
Guns
Home Security
Survival Gear
Cruise Missiles

[ComerPerro]

11. Don't forget Real Estate

I see more and more "get rich in real estate" commercials than I ever have in my life.

That's because they are teaching people how to invest in tragedy.

"Someone dies or loses their job. So the bank takes the house. That's where you come in. Buy it for pennies on the dollar, and sell it to make millions! (maybe, probably not)."

They cater to the worst, greediest types of people, who seek to profit on human suffering and misery.

But, I take comfort in knowing that those suckers are getting scammed like crazy. They deserve to be taken for a ride and lose everything. Maybe then, someone will swoop in and buy their house when the bank or government auctions it off.

[Viva_La_Revolution]

16. I was next to one of these guys in the bank a few weeks ago...

The teller asked him how he was, and he went off a gleeful spiel about how well he was doing snatching up these houses from people who were losing them. I walked out of there feeling absolutely ill.

[sandnsea]

3. Arkansas used to have a 10% annual rate law

It's nice they're drawing attention to the problem, but it's just ironic what we've come to except as normal. It's still all legalized loan sharking.

[Nikki Stone 1]

4. YES! This is important. Loan sharking is now legal, it seems

I totally support this.

[Katherine Brengle]

5. These types of lenders also exploit a lot of military families...

and there is no excuse for that. We had an educational meeting about this kind of thing on my husband's base before he was deployed and they warned us to avoid them. They also have agencies set up in case we fall on hard times--and laws to protect us from eviction--it's too bad every American isn't protected this way.

[SPKrazy]

7. Yes, I have a friend who has made a fortune in this business

He tried to get me to go into it and I told him I couldn't do it.

I am a clincal social worker, and couldn't see going from helping people to get their lives together, to helping people destroy their lives.

He's got all kinds of rationalizations for it. Interestingly enough, he votes as a Democrat and hates Bush.

He's always been about finding the easiest way to make a lot of money and he found it and did.

He's still my friend, we just don't talk about what I think of his business.

[Viva_La_Revolution]

9. How can he possibly rationalize this?

I just don't get it.

[Viva_La_Revolution]

8. I'm glad someone is being warned...

and I'm glad there are other options for servicemembers... now, how do we get the word out to others?

[Jayhawk Lib]

6. Gambling casinos

and state run lotteries are in the same boat. They are a tax on the poor. I do not know for sure where I stand on those issues.

It is hard to protect people from themselves. As long as the loan terms are clearly spelled out in front and a person still chooses to participate what can you do? At least they get some of their money back while with lotteries they may not get any of it back.

I go to places where people sit around and play keno. I could afford to play but I do not. I see a lot of people with a lot less means than me sit around for hours and smoke cigarettes and play keno.

[philosophie_en_rose]

10. At least lottos and casinos charge upfront.

By the time a payday loan place is finished, a $100 loan can turn monstrous. Those places typically have %700 annual interest rates. It's disgusting loan sharking - with collections agencies verbally assaulting debtors instead of breaking their legs.

[Jayhawk Lib]

12. Nobody has to get a payday loan.

The charges are up front. If you know what the terms are,there is no reason not to know, you brought it on yourself.

Common sense will tell you to stay away from these places. IMHO casinos and lotteries are a lot more unfair to the poor than the payday loan shops.

[philosophie_en_rose]

15. So let's just repeal all the laws on usury!

I never needed to get one myself, but have seen the contracts. The people that perpetuate that system are scum.

Common sense tells people to not use credits or loans at all.


But you know what? Common sense is a luxury, when you're desperate. And those that prey on people in need are disgusting.

[Jayhawk Lib]

17. I agree

usury laws should be repealed as long as all charges and fees are spelled out up front. If you agree to accept the conditions you have a deal. Just like buying a car, home or anything else. If the price is too high you do not buy...

[Taxloss]

13. Ah, my pet subject! How long do you have?

The rates charged by these outlets are extortionate, nothing more, nothing less. I researched the activities of lenders like this in the UK (all American companies, BTW) and they're a scam, pure and simple. If you like I could send you some data.

[cynatnite]

14. We've never been broke enough to go to one of those places...

An old friend of mine wanted to get her husband some new work boots because his were in such bad shape. She was going to get a payday loan and I told her I'd buy them and she could pay me back. I warned her about those places. She took me up on the offer and paid me back a few weeks later. Less than a month after that, she borrowed money from them anyway. Talk about stupid. It took her forever to get out of debt with those sharks.