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Payday loan closings? They are banned in few states.

Date: Sun, 03/05/2006 - 23:46

Submitted by anonymous
on Sun, 03/05/2006 - 23:46

Posts: 202330 Credits: [Donate]

Total Replies: 18


I heard that Check Into Cash is closing. It is here in North East Missouri and I also heard that Michigan just passed a bill to ban all payday loan companies is this true?


my Debt consolidator jstu sent this article to me:

Quote:

Dear James L. Frannea:
>
> Yesterday it was announced at a press conference called by North Carolina
Attorney General Roy Cooper that his office had reached a settlement that
has essentially stopped payday lending by all major companies making
illegal loans to residents within the state. The settlement also calls for
three major payday lenders to pay a total of $700,000 in restitution to
fund efforts to help consumers impacted by payday loans.
>
> Peter Laroche, President & CEO of CCCS of Forsyth County, Inc. in
Winston-Salem, NC, spoke at the press conference about how CCCS' credit
counseling and financial literacy education intervention has made a
difference in the lives of North Carolina residents that have utilized
payday lenders to deal with their short-term financial emergencies.
>
> The Attorney General announced that the settlement funds will go to
nonprofits to help their efforts to provide credit counseling and
financial literacy to North Carolinians who might have turned to payday
loans.
>
> Prior to yesterday's event, the Attorney General's Consumer Protection
staff consulted with Laroche on how to identify which credit counseling
agencies serving NC residents should receive some of the out-of-state bank
payday settlement funds. At the end of the day they decided to select
North Carolina-based, CCCS nonprofit holistic credit counseling agencies
that are members of the NFCC and are accredited by the Council on
Accreditation for this funding. Because of this decision, a total of
$480,000, or nearly 70 percent of the funding will be distributed to the
following NFCC member agencies in North Carolina:
>
>consumer credit counseling Services (CCCS) of Western NC, CCCS of
Fayetteville, CCCS (Division of United Family Service) in Charlotte, CCCS
of Gaston County (A Division of Family Service, Inc.), CCCS of Greater
Greensboro (a Division of Family Service of the Piedmont, Inc.); CCCS, a
division of Triangle Family Services, CCCS of Forsyth County, Inc., and
CCCS of the Carolina Foothills.
>
> The NFCC applauds the efforts of the North Carolina Attorney General's
Office and congratulate Peter Laroche on his efforts to secure funding for
NFCC members in North Carolina to help consumers become more financially
empowered and live better lives. We are pleased that the value of
financial education is not only being recognized, but also being funded,
and that NFCC member agencies are being rewarded for the quality of their
counseling and education.


lrhall41

Submitted by rkai93 on Mon, 03/06/2006 - 11:10

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I live in Michigan, and I hope we did pass a bill to ban all payday loans. You would not believe the walk in places we have around here..I live in a tri-city area, and there are 3 check and go, a bunch of cash stores, and at least 5 or 6 others stuck in plazas, usually right next to rental places. Isn't this pathetic?


lrhall41

Submitted by finsfan13 on Sat, 03/11/2006 - 19:23

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Curious, good for you that you've not had any problems. These places are no better than loan sharks and charge inordinate amounts of interests and fees. A lot of us got caught in a trap with them and have gone into debt consolidation because of them. We got ourselves into the mess but we are all working together on here to help each other get out. If you get in the trap you will need our help. Good luck to you but try to stay away from these places.


lrhall41

Submitted by CycloneFan on Wed, 03/15/2006 - 10:06

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Sue,

I believe payday loan companies are only a trap if the consumer is the one setting it. Before I took any loan I read all the paperwork and understood how the loan works. Then when I needed the loan I took the amount that I needed. Nothing more. I work my payday loans so that I can pay them back on the first due date. So many times people opt to refinance again and again, this is were the trap lies. I do not feel what they charge to much. If it was my money I was loaning to a complete stranger I would want to charge as much if not more than they do.

I feel it is up to us to be smarter, more conscientious consumers. We can not jump blindly into any arrangement with any sevice provider without fully understanding the contract and terms. I see my friends do it all the time from satelites to new cars. You can buy an new car for $10,000.00 with $200/month payments. What you failed to read is that the last payment is $600.00.

I also find it interesting that consumer complain about the interest that payday loan companies charge, but no one ever complains about a bank charging $30.00 for a bounced check that was only $10.00. Or credit card companies that will let you make a minimum payment for the rest of you life and it never affects you balance. Are these not the same scenario as a loan company charging $30.00/$100.00 loaned?


lrhall41

Submitted by on Wed, 03/15/2006 - 11:57

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Sue you're right, we do have to be responsible for ourselves. I totally agree. I stand on my soap box and scream about these payday loan people and all the problems they cause. If you come in this forum any given day, you will see all kinds of people with questions about payday loans and what to do---Sometimes I think they need to set up a new forum here, dealing with nothing but payday loans, but then we wouldn't have anything to do in this forum because payday loans keep the most questions coming in. People get in with these places and can't get out. I think maybe instead of bashing the payday/cash title loan places, we should try to educate people more about the downfalls of getting involved with places such as this and the problems that can accur. It does come back to responsiblity. I guess its kinda like a bar---some can scream all day about trying to shut a bar down because of the problems it causes families due to alcoholism--but the bottom line is, its not the bars fault. That alcoholic makes that conscious decision to drink and go into that bar. Bars are always going to be around just like payday loan places, its about the responsibility of the person. Maybe this is a poor example to use but its what came to mind.


lrhall41

Submitted by imkimssister on Wed, 03/15/2006 - 19:45

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