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 Posted: Sat Sep 15, 2007 12:59 pm Subject: Payday Loan News
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| Quote: | September 14, 2007
Final Days of DC Payday Loans Could Be Nigh
These could be the last days of payday loans in the District of Columbia. The D.C. City Council will convene for a special vote on the future of fast cash loans in the Capital on September 18th, a date to which cash advance friends and foes alike have looked with excitement and trepidation. By all accounts the writing is on the wall for the lenders of short-term, high interest personal loans, but the vote date still carries with it an air of suspense.
Currently, faxless payday loan providers can charge sixteen dollars and eleven cents per one hundred dollars borrowed, a rate which has sparked widespread accusations of predatory lending and loan sharking. Council members Mary Cheh and Marion Barry co-sponsored a bill to bring fast cash loans under the District’s usury cap. That means a flat cap of twenty-four percent annualized interest on cash advance personal loans and, more likely than not, the death of payday loans in D.C., as lenders claim that they cannot make money with so stringent a restriction. Twenty-four percent per annum interest comes to a little over ninety cents on each one hundred dollars borrowed.
Back in March, the Council voted unanimously on preliminary approval of the payday loan cap, at twelve-to-one. Rep. Barry made headlines in July by abstaining from another critical vote, saying that be now believed that cash advances ought to be limited, not prohibited. Yesterday, Cheh rounded up several ex-fast cash loan industry employees to give testimony on the predatory nature of payday personal loans. For their part, the cash advance lenders in Washington have formed a coalition to insist that they intend good for consumers, not ill. The vote will cap months of speculation and mud-slinging by both sides of the debate. |
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Last edited by goudah2424 on Sat Sep 15, 2007 1:00 pm |
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goudah2424
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Posted: Sat Sep 15, 2007 1:00 pm Subject:
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| Quote: | September 14, 2007
Check ‘n Go Employees Reveal Dirty Secrets
Several former workers of the Check ‘n Go payday loan chain have blown the whistle on their ex-employer. In Ohio, where the debate over the relative merits of cash advance personal loans is fierce and proposed legislation to cap annualized interest rates on fast cash loans is rapidly gaining momentum, such a defection is some seriously newsworthy stuff. Check ‘n Go provides cash advance loans to consumers at over fifteen hundred storefront locations across the nation, as well as faxless payday loans at its internet web site, and is based in the Ohioan city of Mason. Several men who worked at Cincinnati-area Check ‘n Go personal loan outlets are now blowing the whistle on the fast cash loan company, claiming that they were specifically instructed to target minority and lower-income individuals in soliciting loans.
The workers formed a coalition to show support for legislation regulating and limiting payday loans. Among them was Mike Donavan, the past district director of operations for Check ‘n Go cash advance outlets in Washington, D.C., northern Virginia and Delaware. Donavan reported how he was told by his higher-ups to really push fast cash loans on poor, black consumers. This sentiment was confirmed by William Harrod, another former manager from the D.C. area. Others issued statements affirming that Check ‘n Go purposefully made it difficult for consumers to get out of their short-term, high-interest personal loan obligations, through repeated rollovers and encouragement to borrow more than they could reasonably afford.
But concerted efforts to disenfranchise working poor individuals and families through aggressively solicited payday loans were just at the surface of Check ‘n Go’s treachery, the employees attested. Donavan alleges that he has been drilled by his cash advance supervisors and Check ‘n Go corporate officials to make monetary donations to the election coffers of company exec John Rabenold, who is pitching a Republican campaign for the 35th District seat in the Ohio House of Representatives. Donovan says that the fast cash loan managers were assured that all contributions were strictly voluntary, but the understanding was that any resistance could impact their jobs.
The news of the Check ‘n Go employees’ defection must have seemed god-sent to the many opponents of deferred deposit personal loans in Ohio. Donovan, Harrod, and the others have thrown their support behind those organizations that are pushing for strict limits on payday loans in the Buckeye State, up to and including an annualized interest rate cap that could potentially close the doors of every fast cash loan store within state boundaries.
Representatives from the Coalition on Homelessness and Housing in Ohio praised the former payday loan store employees for their bold action in speaking out against the prejudiced and discriminatory practices of cash advance lenders like Check ‘n Go. Also on the side of fast cash loan opposition is the Ohio Coalition on Responsible Lending, which met with state Rep. William Batchelder, R-Medina, to review details of a bill Batchelder plans to propose during the next General Assembly to cap interest on these personal loans.
Check ‘n Go, of course, vehemently denies the claims of the former faxless payday loan store employees. When pressed for a response to the dramatic testimony, a representative of the fast cash loan chain decried the stories as “false and reckless.” The statement defended the business practices of the cash advance personal loan lender, insisting that Check ‘n Go “adheres to all local regulations and industry best practices that provide for a variety of consumer safeguards."
John Rabenold, the House candidate, also fervently rejected the statements of the fast cash loan store employees. Rabenold insists that no one at all, much less anyone at the Check ‘n Go payday loan stores, was pressured into giving him money. The exec points to the fact that all campaign contributions must be made public, and that only twenty-one Check ‘n Go cash advance personal loan employees made campaign donations. Everyone who helped him out, said Rabenold, understands his values and shares his conservative beliefs about what is best for the welfare of his would-be constituents in Ohio. |
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goudah2424
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Posted: Sat Sep 15, 2007 1:43 pm Subject:
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That story about the check n go employees gives a little more information that the one I found a few nights ago on one of the local news websites when I couldnt sleep and was looking at different news stories online.
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blueangelkc80
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Posted: Sat Sep 15, 2007 2:14 pm Subject:
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Well it's nice to know that those employees have come forward to reveal what actually takes place in that establishment  .
Good for them . These loan sharks need to be booted out  .
ladybug
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ladybug
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Posted: Sat Sep 15, 2007 9:01 pm Subject:
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Thanks for the info, Goudah--but I wish I could say I was surprised re Checkngo. This just gets sleazier and sleazier, doesn't it? And let's monitor the results of the election in DC this week. It should be very interesting to see!
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kscornell
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Posted: Sat Sep 15, 2007 10:35 pm Subject: reply
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I love goudah, the research queen! Thank you, goudah! You always have such good information for everyone! 
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cannr
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Posted: Sun Sep 16, 2007 8:10 am Subject:
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Yes, she does, Cannr!! And the reason this DC election is going to be interesting, is because it could forcast a possible nationwide trend, I feel. We need to stay tuned!
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kscornell
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Posted: Sun Sep 16, 2007 8:59 am Subject:
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Thanks Goudah! What great info- I will be keeping my eye out too! Everyone needs to send their state representatives this, and other info about pdls. I had sent mine info on pdls, and also info from my experience about collection agencies and their practices. If they know this info- they can be prepared when they go to Senate.
The more people that send this type of info, the better. I am hoping this will catch on in every state, and they will follow suit like DC!! Maybe if this goes through, other city councils will look into this!!KAren 
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Bossy4455
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Posted: Fri Sep 21, 2007 6:59 am Subject:
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This passed!
But Check n Go is now suing the guy mentioned in the article.
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goudah2424
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Posted: Mon Oct 08, 2007 12:31 pm Subject:
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| Quote: | October 2, 2007
Check ‘n Go Sues Ohio Whistleblower, CRL
It was big news several weeks ago when a trio of former Check ‘n Go payday loan store workers from Ohio came together to blast their erstwhile employer for unsavory tactics up to and including predatory cash advance lending. The testimony was striking, scandalous, and objectively inflammatory, especially the words of Michael Donovan, an ex-district manager with the company. Donovan alleged that he received bonuses for courting repeat fast cash loan customers at any cost, including irreparable damage to their personal finances. He also claimed to have been pressured to contribute to the campaign coffers of John Rabenold, a high-ranking Check ‘n Go exec and Ohio House candidate. Donovan expressed hope that the Ohio General Assembly would severely limit or entirely ban the controversial short-term personal loans, which he asserts are directed towards minorities, and the poor.
In response, Check ‘n Go has filed a lawsuit, claiming slander on the part of Donovan and the Center for Responsible Lending. The CRL is a national non-profit consumer advocacy group that has long stood for the clean-up of the payday loan industry, and the sponsor of the press conference at which Donovan and two other former Check ‘n Go cash advance loan store employees spoke. Check ‘n Go claims that Donovan and the CRL made utterly untrue statements designed to tarnish the reputations of both the Check ‘n Go fast cash loan chain, and payday loans in general.
Furthermore, Check ‘n Go wants to brand Donovan a criminal who can’t be trusted. The payday loan lender claims that Donovan has “multiple felony convictions,” and applied for his past cash advance loan store job with a fraudulent social security number. Also, the fast cash loan company claims that Donovan broke confidentiality agreements, eavesdropped to attain confidential trade secrets, and breached fiduciary duty. Donovan denies all allegations. |
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goudah2424
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Posted: Mon Oct 08, 2007 12:39 pm Subject:
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Furthermore, Check ‘n Go wants to brand Donovan a criminal who can’t be trusted. The payday loan lender claims that Donovan has “multiple felony convictions,” and applied for his past cash advance loan store job with a fraudulent social security number. Also, the fast cash loan company claims that Donovan broke confidentiality agreements, eavesdropped to attain confidential trade secrets, and breached fiduciary duty. Donovan denies all allegations.
Sooo, they hired a convicted felon with a fradulent ssn? Way to go!
Great article goudah!
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volleyballmom
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Posted: Mon Oct 08, 2007 1:10 pm Subject: reply
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I'm sorry. I thought that was a requirement for all pdl employees. 
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cannr
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Posted: Mon Oct 08, 2007 1:15 pm Subject:
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LOL!! Yea, and now they are complaining about it! Heck, everyone has morals at some point!
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volleyballmom
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Posted: Mon Oct 08, 2007 2:18 pm Subject:
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Nice attempt to advert their wrong doing by trying to ruin the rep of an ex employee. I particulary enjoyed 'Donovan broke confidentialily agreements, eavesdropped to attain confidental trade secrets'. Their upset because the man woke up one morning and realized he had a conscience ! Repeat after me SMEAR CAMPAIGN!
Eventually they even turn against their own.
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Posted: Mon Oct 08, 2007 4:41 pm Subject:
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Isn't there a whistleblower law that protects employees who inform on their employers when the employer is in the wrong? I know it applies to the big tobacco companies, etc....why doesn't the same apply to PDL companies? CheckNGo is a legal entity - they should face the same penalties for suing a whistleblower as a large tobacco corporation. 
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SUEBEEHONEY70
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Posted: Mon Oct 08, 2007 5:13 pm Subject:
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I think this fight has just begun and we will not hear the last of this for a long time to come. I am just glad that I won my battle with them which I could not have done if it was not for this site and its awsome members. I thank each and everyone of you and I look forward to helping others here as you all have helped me for a long time.
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