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Posted: Mon Feb 05, 2007 6:14 am Subject: NPR Radio Article on Payday Loans

There was a very good spot on NPR Radio this morning regarding payday lenders in New Mexico. I thought you all might find it interesting. They stated the interest rate was 560% annually on these loans, and highlighted a couple of consumers who had upwards of 4 loans each - and how they run in the vicious circle every payday, paying out $500 or more every month in fees alone, just to "renew" the loans.

What was interesting was when they spoke to the owner of two storefront payday lender shops. She defended her company, saying it was an alternative to the bank's overdraft protection or overdraft fees, which she said were sometimes "in the triple or quadruple digits" when compared to her company's interest rates. There was also commentary on the political aspect, where Congress is trying to clamp down on payday lending, but every time New Mexico has tried to enact a stronger payday lender law, the lobbyists manage to find a way to block it. They said that the lenders in New Mexico have 22 lobbyists representing them. Then the interview turned back to the owner of the payday lender shops - and asked her what she thought of the new law that New Mexico is trying to enact - one that would place an interest rate cap of 36% on small loans like the ones her payday lending company offers. Her response:

"That would put us out of business. We wouldn't even be able to pay the light bill. In fact, we'd be in the same position as the people that come in here to borrow money to pay their light bill."

One can only hope.

Posted: Mon Feb 05, 2007 6:32 am Subject:

Very interesting. That is what we need to put them all out of business. Yeah !!!!!

Posted: Mon Feb 05, 2007 8:22 am Subject:

Wonder what tune she'd be singing if the shoe was on the other foot!

Posted: Mon Feb 05, 2007 8:24 am Subject:

LETS TURN OUT THEIR LIGHTS.

Posted: Mon Feb 05, 2007 8:24 am Subject:

I know she thinks it would be bad to not have lights...

Posted: Mon Feb 05, 2007 10:49 am Subject:

I just found that whole piece very interesting. Finally, finally, FINALLY...a news reporting agency is showing the TRUE NATURE of these payday lenders and what happens to people who take these loans out. They even went so far as to describe the cycle - a loan is taken out, something happens that causes the borrower not to be able to pay it back on time, and they have to take out another PDL to pay back the interest on the first one, and so on, and so on. I was SO happy to hear them describe that on the radio. I can only hope many others were listening!

Posted: Mon Feb 05, 2007 1:03 pm Subject:

Thanks for the info, SueBee!! It's too bad this can't spread like wildfire through the medai ,newspapers, etc. I think if more people were educated in their practices, they may think twice about getting a loas. On the other hand, I knew the interest, fees etc., but I need groceries, medicine, etc., and at that time had no other choice. That's what these places depend on-desperation.!!..Karen

Posted: Mon Feb 05, 2007 1:12 pm Subject:

That is what got us started on "the path". Loosing some income and needing to take care of things due to me being out of work from surgery and husband's hours cut a bit at work. We thought we were helping ourselves a bit without realizing how much it was going to affect us down the road and now we are fighting to get ourselves out of the mess we made for ourselves. But since we did this and finding this site, we have been spreading the word about not getting a PDL loan and why. Maybe if we had had a bit more information on exactly how they worked, we might have thought differently about them, but like I said before hind sight is 20/20. We will just keep passing the word along though.

Posted: Mon Feb 05, 2007 1:29 pm Subject:

No problem, Karen! All of us, like you and 2nband above, started taking payday loans when times were dark, and we couldn't see the light at the end of the tunnel without thinking it was an oncoming train! We knew about the interest, but didn't care, because we were desperate. And you're exactly right, Karen - those companies count on you being desperate enough to accept the interest rate because you have no choice. Or at least you feel you don't at that point. We know better now. Smile

Posted: Mon Feb 05, 2007 1:34 pm Subject:

SUEBEE is right and we learn from our mistakes, costly that they may be, to NEVER EVER do that again! I never ever want to go through again what I am going through now. I think that there should be something that prevents them from even letting someone from states that prohibit these types of loans from getting a loan. Some way to block someone whose address and bank account are in one of these states. That would probably eliminate some of the problems, well I would hope it would anyway.

Posted: Mon Feb 05, 2007 1:34 pm Subject:

Yeah, SueBee-Thak God!!I still get a postcard from the pdl I padi off last and had for the longest, saying they miss me and have money waiting!! I bet they do miss me-or at least my money Laughing

Karen It's nice to be missed

Posted: Mon Feb 05, 2007 1:35 pm Subject:

Exposure, Exposure, Exposure. The more exposure we can find and get out there the weaker the hold of these companies. Public figures, regardless of their affiliations, have to adhere to the wishes of their constituents of they want to stay in office. We had a guy here in Utah that owns 4 storefront loans companies. He was in the legislature for a very short time until he decided that he was on the hot seat for controversy. He's gone back to being a store owner.

Posted: Mon Feb 05, 2007 3:24 pm Subject:

Well said, Pink Lady Smile

Posted: Mon Feb 05, 2007 3:27 pm Subject:

lol - exactly, Mishele!

Posted: Mon Feb 05, 2007 5:48 pm Subject:

I am going to the NPR website tonight to suggest they do another run of that story, but expand it by looking over our website and finding out just how many people are affected by this industry on a daily basis.

Posted: Mon Feb 05, 2007 6:32 pm Subject:

I have emailed Dateline NBC with a story suggestion about Payday Loan companies along with a link to this site for them to see how many people are taken in by these companies and how many states they are loaning illegally. I will keep everyone posted on if I hear back from them.

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