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 Posted: Fri Jan 04, 2008 1:48 pm Subject: Who hates Payday loans?
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| Quote: | Who Hates Payday Loans: The Religious Leaders
With opposition to payday loans so strong and universal, it can seem some times like the massive coalition against cash advance lending is totally homogeneous. Perhaps you have pictured masses of faceless people picketing their local short-term, high-interest personal loan store, but you have more than likely not given much thought to who they are. Are they hardcore liberal vigilantes, for instance? Idealistic nutjobs? The truth is, that the citizens decrying fast cash loans come from many different backgrounds and walks of life, and protest the loans for a variety of reasons. One of those reasons has to do with religion.
Religious leaders have found several justifications in the Bible for their stance against payday loans. They believe that the lenders of usurious personal loans with be judged harshly, and that the dubious ethics of cash advance lending make it sinful. These authorities would rather that their flock never become associated with these credit products. Priests, pastors, rabbis, and reverends are some of the most outspoken foes of fast cash loan lending, as they are used to making their voices heard. Renowned Baptist minister Reverend Jesse Jackson has spoken often and passionately on the subject, often before state legislators considering whether payday loan restrictions would be best for their constituents.
In general, cash advance lending runs against the general message of Christianity. Charging four hundred percent interest on a payday loan, after all, is not exactly the best case of doing unto ones brother as you would like done to yourself. Some larger churches will set aside discretionary funds to help out families in need, rather than have them turn to risky, high-interest personal loans. |
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goudah2424
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Posted: Fri Jan 04, 2008 1:48 pm Subject:
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| Quote: | Who Hates Payday Loans: The Minority Activists
Who exactly is protesting payday loans? You’ve probably figured out by now that the answer to that query is “a lot of people.†While the mass of citizens pushing for stricter regulation of the controversial short-term personal loan industry is large and opinionated, it is also broken down into a wide variety of interests. In short, not everyone hates cash advance lending for the same reason. Take, for example, the folks who oppose fast cash loans based on their belief that the industry is racist and discriminatory.
It’s a long-help allegation against cash advance lenders that they purposely market their personal loan products to minority consumers and families. Census data indicates clearly that many fast cash loan stores cluster within neighborhoods that are comprised by a majority of African-American households, and that lenders will target their marketing efforts to these groups by way of direct mailings, billboards, and local radio/television/print advertising spots. It’s a sad fact that many of these neighborhoods are lower-income, which draws payday loan merchants like flies to honey. On the whole, minority consumers take out more fast cash loans than do white ones – but it’s hard to tell which is the cause and which is the effect in this chicken/egg situation.
The Reverends Al Sharpton and Jesse Jackson are among the many minority-rights activists who have railed righteously against payday loans. Some of these spokespeople are less opposed to the idea of cash advance lending in general than they are against racist lending. Others oppose the idea of fast cash loans entirely, and are among those who want to seem them prohibited by state- or national-level legislation. |
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goudah2424
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Posted: Fri Jan 04, 2008 1:49 pm Subject:
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| Quote: | Who Hates Payday Loans: The Other Consumers
If you have been following our “Who Hates Payday Loans†series, then you have already learned a bit about the varied opposition to the cash advance lending industry, and just how diverse are the opinion on why it ought to be limited or shut down entirely. You may be thinking right now that the coalition of fast cash loan foes is entirely comprised of groups, based around beliefs or politics. That’s not entirely true, however – many individuals oppose high-interest, short-term personal loans without the backing of a special-interest group, just based on the firmness of their own convictions.
When you see picket lines outside payday loan stores, more often than not it isn’t some big group that’s organized the protest. These cash advance personal loan foes are just neighborhood folks who are disgusted by the presence of the controversial fast cash loan products, their merchants/storefronts, or both. It’s more than just a sense of brotherly indignation over the treatment of fast cash loan customers that make the denizens of any given metropolis in America hate payday loan (although that, too, is a factor) – it’s the stores that offer them. Many citizens get frustrated when multiple cash advance loan companies flock to open storefront locations within city limits, because they are convinced that these businesses are associated with blight and a lower-class image.
Cities that have struggled for years with gentrification and beautification efforts are often loathe to see payday loan merchants come in and sully their hard-earned image. Not all of these critics actually have any problem with the fundamental concept of cash advance lending, however. |
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goudah2424
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Posted: Fri Jan 04, 2008 1:49 pm Subject:
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| Quote: | Who Hates Payday Loans: The State Governments
To date, the government of the United States of America has remained essentially neutral on the hot-button issue of cash advance lending. In October, Congress passed the first-ever national-level legislation of payday loans, having to do with fast cash loan interest rates extended to members of the Armed Forces and their dependent family members. Because the ethical questions posed by fast cash loans are so political in nature, it would be impossible not to count lawmakers as among the group of people who are opposed to these personal loans: even if they do not all feel the same way.
To date, thirteen U.S. states have entirely ride themselves of cash advance lending and its merchants, either by way of out-and-out prohibition, or by such legal mechanisms as make it untenable for payday loan merchants to do business, such as strident interest rate caps. Every other state with the exception of Wisconsin has some degree of restrictive legislation in place against fast cash loan business, with some stricter than others. Almost none of these states are at peace regarding their decisions over fast cash loans, and are in a permanent state of flux over whether they should tighten or loosen their current laws. Some locations, such as Ohio and Virginia, have become virtual battlegrounds in the days leading up to the opening of 2008’s General Assembly, as the whole state waits with baited breath to see if legislators will pass bills to eradicate short-term, high-interest personal loans therein.
Lawmakers are troubles by payday loans for a variety of reasons. Cash advance lenders have deep pockets, and tend to court their friends in the Legislature quite handsomely, but many state representatives find it hard to ignore the compelling evidence that fast cash loans has serious repercussions for their constituents. |
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goudah2424
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Posted: Fri Jan 04, 2008 1:50 pm Subject:
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| Quote: | Who Hates Payday Loans: Defenders of the Elderly
Opposition to fast cash loans is wide and varied. The forces working against payday loans are large, but you might not know that they are comprised of so many schools of thought on the subject. Our series on cash advance antagonism here at Payday Loans ABC has so far has carried us from religious leaders, to minority activists, to government officials in state-level politics, to other consumers. Most of these folks would agree that fast cash loan merchants unfairly target certain groups of people with their unethical loan products. One group often associated with that complaint is the elderly.
Certainly, it cannot be denied that cash advance lenders love seniors. Many live paycheck-to-paycheck, forced to cope with fixed incomes due to their meager Social Security allowances, pensions, or retirement funds. Oftentimes, these resources do not stretch to meet all a household’s needs, and so these citizens turn to payday loans. It’s a sad fact, too, that many geriatric consumers do not have the full mental capacity to make sound decisions about their finances, due to age and illness. These consumers may make the worst decisions about fast cash loans, taking out illegal and dangerous personal loans from criminals offering so-called payday loans outside the boundaries of the law. These crooks know just what to say to lure in their unsuspecting prey, and trap them in loan obligations with triple- or quadruple-rates of interest and with predatory and usurious penalties attached.
Ergo, elderly-rights activists decry payday loans. The American Association of Retired Persons (A ARP) has set up a hotline by which older Americans can contact their state legislators to protest cash advance lending, and offers tips on how not to get suckered by predatory lending. |
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goudah2424
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Posted: Fri Jan 04, 2008 1:50 pm Subject:
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| Quote: | Who Hates Payday Loans: The College Students
This is the last installment of our “Who Hates Payday Loans†series. By now, you have probably learned about the wide variety of opposition to cash advance lending, and the many, many groups of people who count themselves as fast cash loan foes based on their beliefs. The thought that this whole mode of consumer personal loan lending ought to be eradicated is an idealistic one, with the ulterior motive of saving disenfranchised consumers from their own bad choices. Perhaps no payday loan critics are as idealistic in their motivations as are college students, however.
It’s easy for the young to get fired up about such a controversial issue as cash advance lending, especially if they are students of such disciplines as economics or political science. College might be the first time in a person’s life that they even become aware of the existence of payday loans – many lenders will purposely open locations close to campuses, eager to prey on the vulnerabilities of young adults’ financial irresponsibility. Some students become involved in fast cash loan store protests as part of extra-credit assignments for class to get involved in political causes with community impact.
Therefore, it is not an uncommon sight to see many young people in picket lines and protests of the cash advance lending industry. Some college students take internships with state legislators and get a taste of the lobbying process, to use their influence to spread the word about predatory personal loan lending. Others will sign up as petition-drive workers to help anti-payday loan proposals make their way onto ballots. |
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goudah2424
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Posted: Fri Jan 04, 2008 2:00 pm Subject:
Latest Blog Post : http://frogpatch.yesdebtfree.org |
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Add the Military to that. The storefronts line up outside of Military bases to grab the personnel on their way out of the base for a good time or on their way back after one. If they were not there these men and women would be less loose with there meager paychecks.
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frogpatch
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Posted: Fri Jan 04, 2008 2:01 pm Subject:
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You are right, I'm surprised there wasn't an article on them too!
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goudah2424
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Posted: Fri Jan 04, 2008 6:35 pm Subject:
Latest Blog Post : Groceries....How to Save $$! |
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add ME (and pretty much everyone else on this forum) to that list! 
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SUEBEEHONEY70
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Shazzers
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Posted: Fri Jan 04, 2008 8:56 pm Subject:
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Who Hates Payday Loans: "Real" Finance Companies
There's a couple reasons I despise them as my competition:
1) Without a doubt, once people start taking out payday loans it starts a downward cycle that eventually consumes all of a debtor's resources and paycheck. When the payday loan companies take my customers through the wringer, they're also taking me through the wringer. Their bullying, aggressive and unfair tactics force debtors to stop making payments to all of their other creditors -- when that happens, everybody loses. I would like to see a study and statistics done on this, but I will propose that most bankruptcies are brought on by a trend that all starts when the debtor first becomes involved with payday loans.
2) Many of my customers are trying to "refinance" their debts by taking out a loan from my company -- this includes my customers that have PDLs and want me to pay them off. But the payday loans absolutely do not want to be paid off; they want you to keep paying them juice every two weeks from now until doomsday. The payday loans refuse to take my check on behalf of the customer to close out those accounts. Even when my company is trying to help a customer get out from under their PDLs, the PDLs won't let them! I find it ironic that Ford Motor Credit will accept a $20K check from my company to refinance a new car, yet the PDLs won't even take a $300 check from us.
And there you have it, even the rest of the finance industry despises payday loans.
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DebtCruncher
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Posted: Sat Jan 05, 2008 7:24 am Subject:
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Good point Debtcruncher...I have done that myself in the past. I am now paying a legit loan company for funds I got to pay off my payday loans. However I was the one who talked with the pdls and got them to accept the payments. I was lucky in the fact that most of my payday loans were storefront and settled with me. However most pdls do not...and want to suck every penny out of a person that they can get..by continuing to take it out of their bank accounts. This action need to be stopped!
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laura19544
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cajunbulldog
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Posted: Sat Jan 05, 2008 9:29 am Subject:
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Great articles and great read, Goudah!! I still say the PDLs are equal to the mob-outrageous charges and interest, strong arm tactivs,etc karen
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Bossy4455
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Posted: Sat Jan 05, 2008 9:43 am Subject:
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Great article Goudah!!! 
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Posted: Sat Jan 05, 2008 6:21 pm Subject:
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My wife recently found this site and has gotten quite a bit of help from it. I recently sent this e-mail to the state of Nebraska Department of Financial Institutions and would like to take a moment to share it with all of you. Thank You for all the knowledge this site and all of the forums have given us.
I am writing this letter to inform and warn of a problem that has revenged my young family. Addiction comes in many forms; gambling, drugs, sex, drinking. These are the expected paths of addiction into our lives, and we all defend against these routes in our own way. I would also point out that society has placed certain limits and laws governing these vices. However the scourge that has harmed my family financially and emotionally is something we never saw coming, and the law was powerless to protect us from.
WE NEED STRONGER LAWS PROTECTING PEOPLE FROM PREDATORY LENDORS. Payday loans sound harmless, even helpful when you listen to their advertising. But the weekly or bi-monthly, hi-interest loan cycle can quickly consume a family's financial resources. People can easly become financially tied to these lenders or even worse, begin borrowing form one to pay the other. This legalized "loan sharking" has been an awful personal problem affecting my spouse, and has driven a painfull spike of high-interest and misstrust into our family.
We are recovering the best we can. This financial problem can't be an isolated event confined to my young family of six. I'm sure there must be a good reason a person has to drive all the way to the state of Missouri to get to certain lenders who actively advertise on Nebraska radio and TV. The reason: looser lendor laws in other states.
Our state needs to enforce the "predatory lender" laws on the books, and pass more to protect family's like mine with low to middle income.
Please remember the familys and children who are depending on officials to beware of companys and banks who prey upon the citizens with unfair practices.
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jmadma
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