House Preparing To Legalize Payday Loans With 391% APRs

[slampoet]

http://consumerist.com/5198880/house-preparing-to-legalize-payday-loans-with-391-aprs
http://www.boingboing.net/2009/04/05/congressman-whos-giv.html

A House subcommittee wants to legalize payday loans with interest rates of up to 391%. Lobbyists from the payday industry bought Congress' support by showering influential members, including Chairman Luiz Gutierrez, with campaign cash. The Congressman is now playing good cop, bad cop with the payday industry, which is pretending to oppose his generous gift of a bill.

"While they may not be JP Morgan Chase or Bank of America, they're very powerful. Their influence should not be underestimated," Gutierrez, the top Democrat on the Financial Services subcommittee in charge of consumer credit issues, said in an interview this week.

Indeed, the payday lending industry is strenuously resisting Gutierrez's measure, which it says would devastate its business. The measure would cap the annual interest rate for a payday loan at 391 percent, ban so-called "rollovers" - where a borrower who can't afford to pay off the loan essentially renews it and pays large fees - and prevent lenders from suing borrowers or docking their wages to collect the debt.

A newer player representing Internet payday lenders - a growing segment of the market - also ramped up its lobbying and political giving efforts. The Online Lenders Alliance, formed in 2005, nearly quintupled, to $480,000, its lobbying expenditures from 2007 and 2008. It contributed $108,400 to candidates in advance of the 2008 elections compared to about $2,000 in the 2006 contests. Gutierrez was among the top House recipients, getting $4,600, while the top Senate recipient was Sen. Tim Johnson, D-S.D., a Banking Committee member who got $6,900.

--------------------------------------------------------0-------

Can We DU this prick's office first thing in the morning?

Contact info.

Washington 2266 Rayburn Building
Washington, DC 20515
[phone]
[phone] Fax
Chicago 2201 W. North Avenue
Chicago, IL 60647
[phone]
[phone] Fax

[Hannah Bell]

1. obscene. btw, the payday loan biz, i've read, *is* linked to bigger financial institutions - with

the payday *named* businesses being fronts, more or less.

at least in some cases.

[BlooInBloo]

2. I wonder if people *don't know* that that's how a flat fee is handled...

or if they just *don't care*.

[slampoet]

5. Last time i took out one it was because MY BANK didn't leave me with options.

I had to pay interest to cash a check with sufficient funds written on my OWN ACCOUNT


People who are preyed upon like this have no options.


Do you ask the rabbit if they DON'T KNOW that is the way Wolves feed?

[BlooInBloo]

6. "Knowledge has no bearing..."

Spoken like a true American.

[Trajan]

8. (facepalm)

OR better yet (smackoffensiveDUerinthekisser) ...

[BlooInBloo]

25. Ooooh. Big man with keyboard. So scary.

:rofl:

[Trajan]

96. (nosepick)

(flicksmile)

[hfojvt]

61. so, it's not a big deal because it is just a flat fee?

I don't understand your question.

[Iwillnevergiveup]

3. Payday?

How about Slay Day?

K&R

[cascadiance]

42. Let's call it what it is... the LOAN SHARK SERVICE law!

[debunkthelies]

103. you got that right

:toast:

[ariesgem]

99. I call payday loan stores ROBBIN' HOODS.

Getting rich via stealing from the poor.

In my neighborhood in L.A, Payday loan stores are on damn near every street corner.

You can't find a friendly neighborhood bank within walking distance. Prepare for a day trip. When you finally find a bank, the line literally goes out the door.


crooked mofos :mad:

[ColbertWatcher]

4. ...

http://www.predatorylendingassociation.com/

[PSPS]

7. In other words, as long as congress gets its vigorish, these goons control the legislation.

So the usury funds the payoffs to congress. I know congress has been selling legislation to the highest bidder for a long time, but this is pretty blatant. What's the difference between this and Randy "Duke" Cunningham's "menu of bribe prices?" This amounts to a "self-financing" money-laundering machine that funnels money to congress. Just lovely.

[cali]

13. states largely control lending practices

11 states ban or highly restrict payday loans. My state does. Check and see what the usury laws are in your state.

[Political Heretic]

17. Federal law will trump that, yes?

So if this passes, screw state laws right?

[cali]

36. no. this will not trump state usury laws.

[Political Heretic]

38. Really?

cool.. I thought federal law always did.

[cali]

40. no. thankfully, it doesn't

always trump state law. states often go further than federal law.

[Political Heretic]

44. if both are going in the same direction.....

I'm not disagreeing, I'm trying to figure something out.

So... take minimum wage.

Fed says its 6.25.

But then a state says, we want to do even more, we want to do 7.25 - they can do that.

But, they couldn't say screw you Fed, we're doing 5.25.


So in this case, if the fed says you can charge up to x interest.

Then a state could say, we want to do even more, and say you can charge up to x+ interests

But can they say, screw you fed, in our state they can only charge x- interest?

If that's correct, thank god. :D

[Statistical]

46. State can only have a LOWER cap not a higher cap.

Both laws have to be followed.

Federal govt says min wage is $6.25.
If a state says minimum wage is $6.00 then the law is useless.

To comply w/ federal law an employer would still need to pay $6.25 otherwise they would be in violating of Federal law.

If a state says minimum wage is $8.00 then employer would need to pay $8.00
If employer pays $7.95 it would be in violation of state law.
If employer pays $7.00 it would be in violaiton of BOTH federal & state law.

Works the same way w/ interest.

The law states the maximum interest rate allowed.

So if Federal govt says 391% and state says 200% then someone charging 201% would be in violaiton of state law.

Likewise if Federal says 391% and state says 40000% anyone charging 392% would be in violation of Federal law.

[Political Heretic]

48. Thank you.

That was awesome.

[liberation]

93. Actually...

that is only true for institutions incorporated in said state. That is why most credit card companies are located in "usury friendly" states.

It really doesn't matter which state you are in, if the company can use a loophole and claim to be incorporated elsewhere in the union.

[depakid]

9. My question: Does the bill preempt responsible state laws on point?

That's been a common MO among the corrupt in Congress by both parties.

Another interesting thing is tyat the states that have the most of these loan sharks also tend to have the highest prevalence of fundamentalist Christians:

See: Research finds geographic link between conservative Christian population and high-interest loan locations

http://www.law.utah.edu/news/show-news.asp?NewsID=105

[midnight]

10. How interesting that the states with the highest prevalence of

fundamentalist christians have these abusive usury tactics in place. We ought to have a consumer division in Washington.

[depakid]

47. "We ought to have a consumer division in Washington."

Unfortunately, thus far the Obama administration and the Democratic "leadership" in Congress seems no friendlier to consumers- and no more eager to hold corporations accountable for abuses than Clinton, Reagan or the Bushes.

Rather sad- and eventually it's come back to haunt them, as people once again will see "not a dime's worth of difference between the parties."

[rucky]

12. There's some movement on the state levels.

Ohio passed a measure last election that greatly limited their activity - and it shut a few down in my town.

That's obviously the only way these predators will be fought.

[Vinca]

11. This has got to be a spoof. States - including New Hampshire

where I live - are finally bringing them under some control. The result here is that they're leaving the state in droves for states that still allow usury. If Congress ever put its stamp of approval on this it would be shameful.

[surrealAmerican]

20. How effective will any of these state regulations be ...

... once these companies are on the internet? It'll be like what happened to the credit card industry in the early '80s. The companies will all operate out of whichever state has the least regulation.

[specialed]

14. only the mob use to charge these kinds of rates....

Disgusting.

[MercutioATC]

15. So what's a fair rate?

Remember, these are meant to be short-term (usually 2 week) loans.

[Political Heretic]

18. Let me just check in with you here before I answer....

...are you actually going to defend predatory lenders?

[MercutioATC]

21. I don't consider the rate "predatory".

Extrapolating a biweekly interest rate over an entire year (and adding fees) might get you a big number, but these loans are not meant to long-term.

That said, these businesses loan to the absolutely worst credit risks...people who cannot get money anyplace else. What's the plan (if any) to get short-term emergency loans to these people?

[Political Heretic]

29. Ok. We're done here.

[MercutioATC]

30. That's fine. Nobody's forcing you to look at both sides of the issue.

[Hannah Bell]

105. 11% for a two-week loan? predatory. there's no "two sides" unless you're a loan shark.

[ColbertWatcher]

41. What about pay raises? Tax cuts to working people?

Or what about universal single-payer healthcare? That would help people immensely.

[MercutioATC]

84. Both great ideas...they'd both probably reduce the need for "payday loan" services.

[Freddie Stubbs]

43. Peeople with poor credit either won't get loans, or they will get them from illegal sources

[rpannier]

80. Driving them deeper into debt is NOT a solution

nor is it short term help

[gtar100]

102. No kidding! But we're bailing out banks, looking to wall street for a strong economy; what else

would they come up with? Figuring out how to get people in debt is *all* they do. Savings and checking accounts are just hooks into their system.

We need jobs that build things. But we've raised a class of people that just don't get it. They really don't know the source of their wealth.

[progressoid]

19. In Canada, any rate of interest charged above 60% per annum is considered criminal

But here in the good ole US of A...


When the Consumer Federation of America conducted a survey of 100 internet payday loan sites, it found loans from $200 to $2,500 were available, with $500 the most frequently offered. Finance charges ranged from $10 per $100 up to $30 per $100 borrowed. The most frequent rate was $25 per $100, or 650% annual interest rate (APR) if the loan is repaid in two weeks.

http://www.consumerfed.org/topics.cfm?section=Finance&topic=Banking&SubTopic=Checking/Check%20Cashing

[MercutioATC]

22. 60% annual interest on a 2-week $200 loan would be a little over $4.50.

Anything above $4.50 in interest (incloding fees) would be "predatory"?

Again, you can't fairly extrapolate the rate beyond the actual term of the loan.

[progressoid]

Well golly, I guess those Canadians are living in a really backward society then.

Clearly our system is working so much better.

[MercutioATC]

24. What does that statement have to do with the topic?

I'm not criticizing Canadian "society", I'm pointing out that a 2-week $200 loan at their mandated rates only results in a net cost to the borrower of less than $5.00.

That fee structure won't even cover the lender's overhead.

[progressoid]

35. In what rational, progressive society is taking advantage of the least fortunate a good idea?

"That fee structure won't even cover the lender's overhead."

Then it seems that isn't a viable business model. Well, to be fair, it currently IS a viable business model. But we used to call it loan-sharking. What was an illegal and immoral practice is now somehow acceptable and legal.

Up thread you said, "That said, these businesses loan to the absolutely worst credit risks...people who cannot get money anyplace else.
It they can't get money anyplace else, how are they going to pay it back? There is a reason why existing banks (who, until recently, would give a loan to a dead cat) won't loan to them.

But, in this business that you seem to be defending, it seems OK to take people who are at the greatest disadvantage and the greatest risk and put them at an even greater disadvantage and greater risk.

[sabrina 1]

75. Good post.

I too was going to ask about lending to those have little hope of paying back the loan. So, that raises another question. How DO these lenders expect to be repaid, and with such a high interest rate? Are they INSURED for such losses? And if so, who is insuring them? And if this is the scheme, or scam is more like it, isn't that exactly what AIG et al were doing? Are these people betting on the failure to repay of those they lend money to, after all, if they are insured at the highest possible interest rate, they ARE better off if they DON'T get paid and simply collect insurance.

It doesn't make sense to want such a high interest rate from people who obviously will not be able to pay it, unless you have something else to fall back on. I'm sure they're not doing it for altruistic reasons, or with great expectations of getting the principle back, let alone the interest.

Otoh, if they are insured not just for the principle but for the interest rate also, then you could see why these ridiculous numbers make sense. That's the only way they make sense, as no one who has to make such a loan, will ever be able to repay anything with that kind of interest. And what's wrong with Congress to even consider this kind of bill?

Someone needs to stop this, if this is the case, or do we never learn anything?

[MercutioATC]

83. Ok, let's try it this way: They ARE charging reasonable interest rates.

The only way you get 300%+ is if you extrapolate the biweekly interest rate plus fees over a year.

If you're talking about them charging, say, 20% APR for a 2-week loan, that's .77% (yes, less that one percent) on a 2-week loan...and that equates to $1.54 interest on a $200 loan. Does that sound like a reasonable expectation?


Now, Imagine the following situation...you have a job, but no savings and lousy credit...

The fuel pump in your car dies. You'll have the $200 to fix it, but not until you get paid again in two weeks.

No bank will loan you money.

Is it better to lose your job than to save $30 in fees?

The problem isn't the lender, it's the borrower that fails to pay off the loan under the agreed terms.

[walldude]

85. Don't know where you get your figures but I took out one of these

loans once. I needed money to pay for my wedding. I borrowed $500. The interest was $75 per week. I ended up paying more in interest than I borrowed.

[TankLV]

89. Yes you can. What you're claiming is BULLSHIT.

so we are all clear now, you are DEFENDING THE FUCKING LOAN SHARKS...

got it...

not need to further debate IDIOTS...

[debunkthelies]

104. Used too?

This IS, the new face of the mob, big business and legal to boot, doesn't get any better than that...... Al C. eat your heart out.:rofl:

[progressoid]

16. 391% would devastate its business?

Then you are in the wrong business.

[derby378]

23. We shall now pause for the return of the loan shark...

...and his "associate," Guido, who excels at busting kneecaps.

[sarcasmo]

81. These things are in almost every other strip mall here in West Michigan.

Pure plain GREED.

[IdaBriggs]

26. Done. k & r nt

[WI_DEM]

27. I hope that it's enough to put these businesses out of business because nobody in there right mind

should sign up for something like that.

[MercutioATC]

32. Assume you have a job, but no savings and lousy credit.

The fuel pump in your car dies. You'll have the $200 to fix it, but not until you get paid again in two weeks.

No bank will loan you money.

Is it better to lose your job than to save $30 in fees?

The problem isn't the lender, it's the borrower that fails to pay off the loan under the agreed terms.

[Lydia Leftcoast]

64. Oh right, the borrow er "fails" to pay off the loan because now his

child is sick and they don't have medical insurance, and then they get a huge interest rate slapped on them.

Eventually, you've got what amounts to debt slavery, and repeating self-serving finance industry talking points won't change that fact one bit.

You know, when I was in graduate school, Yale gave us three-month loans interest-free if we needed something like deposit money for an apartment.

[bertman]

77. When you were in grad school you were a good credit risk, Lydia. If, however, you were

a poor person who had a bad credit history and a low income how would you get a loan? Use your winning smile and your sparkly personality to convince the loan officer that you won't default on THIS loan?

I agree with Mercutio that you have to consider the individual transaction. If the person who went in for the payday two-week loan had other options such as family or friends who had the money to loan to him, don't you think he'd have already tapped that resource?

Obviously, the person taking out the loan is a high risk. Why should the the lender not make $5 on a $200 loan?

I think you're using the rhetorical trick of introducing heart-rending "possible scenarios" to try to win your argument. Not fair.

If there were other avenues available to the people who use these "services" they would use them.

This is an ugly business, but nobody can be expected to make risky loans for nothing. Except of course, Hank Paulson and Tim Geithner.

I personally know a number of exceedingly poor individuals who have learned that I am a "soft touch" for a "loan". So, they come by my office and offer to clean the windows or police up the litter in the parking lot if I'll front them $20. I'm a lucky person who has a decent income, so I don't mind giving them the money on those terms. Sometimes they show up to pay me back by working for an hour. Sometimes they come back in a week or two with another sad story. And often I will give them an "advance" so they can pay their rent/get a meal/buy a bus ticket to go see their mom/etc.

But I would never loan them $200 because I would never see it again. So, for these folks, someone has to be able to charge SOMETHING to give them a loan. Five bucks is a bargain in my book.

[Lydia Leftcoast]

78. Then let them charge normal interest rates

The loan shark business exists in Japan, too, and they are some of the scummiest people on earth. I'm sure their American counterparts are no better.

[MercutioATC]

82. They DO charge "normal" interest rates!

That's the point.

The only way you get 300%+ is if you extrapolate the biweekly interest rate plus fees over a year.


If you're talking about them charging, say, 20% APR for a 2-week loan, that's .77% (yes, less that one percent) on a 2-week loan...and that equates to $1.54 interest on a $200 loan.

[TankLV]

90. So you continue to defend the indefensible...

fusking asshole...

[earth mom]

28. Meanwhile, Obama is propping up the credit industry-so they can sock it to us like this.

What does that really tell us all about who is really running this country? :grr:

[Nikki Stone1]

31. There were reasons why usury was a sin.

We seem to have forgotten that.

[Political Heretic]

33. People defending these companies - do some research. They TARGET poor people

They target poor neighborhoods, and areas where legitimate banks and business are not opening up shop (across most major cities with sever inner urban conditions.)

Then they jack up their rates, NOT to "cover risk" or whatever other stupid ass "pity poor company" reason the clueless can come up with, but rather because they know they have a trapped population that often does not have the means (trasportation or otherwise) to go elsewhere, or can't open a bank account, or can't access other solutions, and then they fleece them. Their target clients are not the completely poor with no ability to pay at all. It's the NEAR-poor living paycheck to paycheck who they can HOOK into and endless cycle where thy have to get another loan every week because after they pay off the last loan they don't have enough money to live on.

Check out the Urban Institute and do a site search for "The High Cost of Being Poor" and look at some of the figures, some of the research data, and comments from former executives from these payday institutions on whether or not their "fees" were about "covering risk" or "exploiting a trapped community"

And then... shut the hell up.

I know this stuff, because I do this research for a living. And I have very little patience for morons when it comes to this subject.

[bertman]

86. Good for you, Mr. Political Heretic researcher. Your are truly brilliant. Now here's a real life

story for you.

I have a nephew who lives in a rent-subsidized apartment, gets a monthly stipend from the government and food stamps. He's a poor person who can't hold down a job because he's lazy and not real bright, plus he's addicted to his computer.

If he runs out of money before the end of the month and he knows he will be getting his government check in a week and a half he can get a two-week loan from one of these companies and go in and pay it off with his check. Sure, he has to pay them a higher rate than you or I would for his loan, but at least he can get a loan. If he was unable to get a loan from a company that does these payday loans he would have NO options because he has already tapped out every relative and friend who tried to help him.

It's sad that there are people who have to use these types of loans, but the other option is the real life loan shark. A very unpalatable option that is.

Now, since you're such a fucking genius, why don't you explain how people who are in such dire straits are going to get a loan. Are you going to give it to them?

[OhioChick]

34. K&R

:kick:

[backtoblue]

37. What an f#$@ rip off....

Pay day and income tax loans are some of the biggest rip-offs known. This gives people and coorporations the right to charge an OUTRAGEOUS interest on loans targeted at the poorer class. It is an OUTRAGE that these businesses can legally charge more interest than a bank and I am calling... This is the reason why people with a military W-2 are not allowed to get a same-day loan from a tax agency - it's a rip-off. :mad:

[scrinmaster]

39. No one's forcing anyone to take one of the loans.

If you don't support them, don't get one.

[Political Heretic]

49. That's not actually true

See my post above.

No, no one is putting a gun to anyone's head. They could of course choose to starve, or go without needed medication, or not feed their children, or not pay rent. But predatory manipulation of a target population with very limited option is definitely in play. And it regularly cross the line into unethical territory.

[Zywiec]

50. So if you put these companies out of business

how is that helping this targeted population?

As you said, they could of course choose to starve, or go without needed medication, or not feed their children, or not pay rent.

If this option is taken away, they have no choice at all.

[Political Heretic]

52. There are several flaws in that question

First, no one is going out of business in the multiple states that already cap the amount of interest payday companies can charge.

Second, the best solution would obviously be not only regulatory but community investment as well. I mentioned this study above, the Urban Institute for example has a study called "The High Cost of Being Poor" which includes not only and identification of some of the problems, but also some proposals to move toward solutions.

Much of it includes funding and programs to help redevelop depressed areas where businesses have fled, and help bring mainstream businesses and financial institutions back into the community. Obviously in terms of helping people not be poor, we've got bigger things that need to be done.

[SeattleGirl]

72. I'm looking for that study on the Urban Institute's website, but so far,

I haven't found it. Would you have a direct link to it? If not, that's fine; I'll keep looking.

I would love to read that study.

[Political Heretic]

108. I'm sorry I missed your post.... I used it as part of a research project. I'll look and PM you.

[backtoblue]

51. by the government supporting such entities

it is setting the stage for people who are under employed and under paid to get relief in a completely unethical form of business which inevitably leads to class-warfare against those who cannot afford to live otherwise. It causes the poor to become indebted to these companies and ultimately dependant on them for their week-to-week survival. This will do nothing but hide and disguise an ever shrinking middle-class and it seems our government is all for it....

[Political Heretic]

53. it is also highly exploitative of an oft-voiceless class.

It's easy to screw poor people, they can't afford to do anything about it :(

[backtoblue]

57. exactly

And it is disgusting that our own government is endorsing and condoning such disregard. It's one thing to look the other way, but another to BECOME INVOLVED in unethical treatment of its own citizens.

[varkam]

55. Except many people aren't quite as...erm...literate as you and I

and will take out such a loan without, say, even being able to read the fine print. True, no one is literally putting a gun to these people's heads and forcing them to sign on the dotted line, but such practices are exploitative of a traditionally uneducated class of people with little to no resources and little to no political power.

[aikoaiko]

45. If I got a payday loaner and ask for a 1000 advance, what are the terms I would expect?

Not in APR, but actual dollar amounts.

:shrug:

[Political Heretic]

54. It varies widely - could be $1,350 could be more or less

[aikoaiko]

59. I looked up a place and its really not that bad if you can pay it back within 12 weeks

If you pay it back you pay about a 10%. The crazy APR comes into place only if you pay it back slowly.

http://www.mycashnow.com/Cash-In-Advance-fees-NewCustomers.php


This is not all that much more than the coin sorter at the grocery store.

[Political Heretic]

62. That's not true everywhere. Hence the it varies widely. Have you never had to get a payday loan?

I guess that could sound a little snarky... sorry.

But being poor, I've had first hand experience with payday loans in my state, and #1 you can't even get a 12 week loan, the longest you can got is 1 month. #2 the interest rate is brutal - right form the get-go.

[aikoaiko]

65. No, but I have had to use credit cards to carry me over from time to time

I emphathize, but I realize the financial penalties are much greater with payday loans.

[Political Heretic]

67. Yeah, its all bad :( We gotta get America a raise

and take care of all the near-poor people that are barely getting by living on debt.

[hfojvt]

60. perhaps $150 since it is $15 on $100

but they may not do such large amounts.

[Political Heretic]

56. MYTH: high fees are necessary to protect against risk

The industry claims its extremely high fees are necessary on account of the risk being taken and its high loss ratio. In fact, in Colorado, one of the few places in the country that collects actual data from the industry, payday lenders charge-off only 3% of the loans made from 1996-1997, while their loans had an average APR of 485.26%.(5) Conversely, California banks charged off 2.7% of credit card debt in those same years, while having an APR of 15 - 22%.(6) Thus, the payday loan industry's claim of risk and loss simply does not stand up to close scrutiny and do not justify the high rates charged. Therefore, there is plenty of room for rates to decrease, as called for by SB 834.

Further evidence of the low risk is the rapid growth of the industry, both in California and around the country. Since payday loans were legalized in California effective January 1, 1997, more than 3,500 payday loan outlets have opened in the state. The industry is extremely profitable. A State of Tennessee report stated that the industry return on equity in 1997 was 30%.(7)

http://www.consumersunion.org/finance/paydayfact.htm

Info a bit dated, but still basically accurate. I would *guess* that the default rate is mildly higher now given our bad economy.

[Uncle Joe]

58. A pillar of organized crime, being loan sharking.

I don't see a difference between loan sharking and pay day loans other than maybe payday loan companies don't break your legs.

I view this blossoming of legalized loan sharking to be a result from, organized crime infiltration either directly or indirectly of the government.

I also believe the War on some Drugs is a direct contributor allowing this to happen. By criminalizing the American People, organized crime is empowered with an endless supply of resources while legitimate government and it's draconian laws become increasingly estranged from the people. Thus in an ironic twist, the average person becomes criminal and the powerful criminals become government or government's master.

[Kajsa]

63. It's predatory lending to

people who have few resources to repay the loan.
Hence, the insane APRs.

It's a legalize form of loan sharking.

[tabbycat31]

66. they're illegal in some states

NJ being one of them.

[defendandprotect]

69. Yes, illegal in NJ . ... but over the internet it's legal -- !!!

These people can be anywhere and lending to people in NJ via the internet --

we've got to get that stopped!

[KTinOhio]

88. Ohio caps rate at 28%

Last year, the people voted in favor of Issue 5, which capped the interest rate at 28% APR and limited the maximum amount of such loans to $500. Five months later, we still have plenty of payday loan shops.

[Deep13]

68. They're illegal in this state.

Will this override state law?

[cali]

70. no.

[Delphinus]

71. Jeezus.

I'll send a fax.

[defendandprotect]

73. Lobbying is simply a euphemism for BRIBERY . . . !!!!

We also need usury laws on student loans -- used to be 6% --

now you can pay on them forever -- !!!

[pinniped]

74. I'm pretty sure those HSBC scumbags are directly affiliated with these sort of rip-off outfits.

This is legalized loansharking like Ticketmaster is to legalized scalping.

[robertpaulsen]

76. How many Fundigelical Congressfucks will vote for this usury without consulting their Bible?

All ironic religious bullshit aside, how many Congressfucks will vote for this without consulting their constituents that they have, or their conscience, which they don't?

[rpannier]

79. A few years back the Army put these places off limits to soldiers because they

found their practices to be predatory and excessive.

Maybe Congress should listen to the Army.

[and-justice-for-all]

87. Payday loans are a financial trap...

and as much as I despise this scheme, I can not expect the Government to make every single decision for everyone. Yes, payday loans are bad, but people need to have a enough commonsense to not use that service and not expect the Government to concern themselves with such a matter.

[Stinger2]

91. The United States and Greed are going to become the same word soon.

This was against the law for years, called Juice Loans or Loan Sharks.

Juice Loans or Loan Sharks.

There are many registered and legal lenders that lend to people who cannot get loans from the most mainstream lenders such as large banks. They often operate in cash, whereas mainstream lenders increasingly operate only electronically, which means that they will not deal with people who do not have a bank account. Terms such as subprime lending and "non-standard consumer credit" are used for this type of lender. Payday loans are one example of this type of consumer finance. The availability of these products has made true loan sharks rarer, though some legal lenders have been accused of behaving in an exploitative manner.

http://en.wikipedia.org/wiki/Loan_shark

MILITARY FAMILIES: IDEAL TARGETS FOR PREDATORY PAYDAY LENDING

The Center for Responsible Lending estimates that predatory payday lending costs Americans families at least $5.5 billion yearly in excess fees, up from $3.4 billion in 2002. The payday lending business model is designed to cultivate repeat borrowers. Rather than filling a need for short-term credit, payday loans trap borrowers in escalating debt.

http://www.responsiblelending.org/issues/payday/briefs/page.jsp?itemID=28546770

The United States and Greed are going to become the same word soon.

[and-justice-for-all]

107. I would never use this service...I would beg relatives..

before I would EVER use the payday loan shit scheme.

[TankLV]

92. Make paydayloans and all other loan sharks ILLEGAL.

and at the same time, institute GOVERNMENT PROVIDED AND PAYED-FOR HEALTH - CARE!!!

That is the ONLY solution.

Put Fargo out of business.

Make it ILLEGAL to charge anything above 12 percent IN ALL STATES, like it used to be.

Pur Fargo OUT OF BUSINESS!!!

[jhrobbins]

94. I watched Bobby last night (if you haven’t, find it; Emilio did a masterful job)

and at the end was the speech we all know so well

He says, “What I think is quite clear, is that we can work together in the last analysis and that what has been going on in the United States over the period of the last three years, the divisions, the violence, the disenchantment with our society; whether it is between the blacks and whites, the poor and the more affluent, between age groups or on the War in Vietnam, is that we can start to work together; we are a great country, a selfless country, and a compassionate country. I intend to make that my basis for running, my thanks to all of you and it’s on to Chicago and let’s win there. (the minute I hear him say that, I want to reach through time and jerk him back)…..

Then at the end though is superimposed part of a speech given on violence in America and it made me weep (this is only part of it – go to American Rhetoric for it all);

This is not a day for politics I take this minute to speak to you today about the mindless violence in America…..

For there is another kind of violence, slower but just as deadly destructive as the shot or the bomb in the night. This is the violence of institutions; indifference and inaction and slow decay. This is the violence that afflicts the poor, that poisons relations between men because their skin has different colors. This is the slow destruction of a child by hunger, and schools without books and homes without heat in the winter.
This is the breaking of a man's spirit by denying him the chance to stand as a father and as a man among other men. And this too afflicts us all.
I have not come here to propose a set of specific remedies nor is there a single set. For a broad and adequate outline we know what must be done. When you teach a man to hate and fear his brother, when you teach that he is a lesser man because of his color or his beliefs or the policies he pursues, when you teach that those who differ from you threaten your freedom or your job or your family, then you also learn to confront others not as fellow citizens but as enemies, to be met not with cooperation but with conquest; to be subjugated and mastered.
We learn, at the last, to look at our brothers as aliens, men with whom we share a city, but not a community; men bound to us in common dwelling, but not in common effort. We learn to share only a common fear, only a common desire to retreat from each other, only a common impulse to meet disagreement with force. For all this, there are no final answers….

RFK speech at the Cleveland Club, April 5, 1968

And there it is … The violence of institutions – the most insidious of all violence

Here is a link to a YouTube ending of the movie

http://www.youtube.com/watch?v=WmRTAa4-QNc

[BobTheSubgenius]

95. Guy I used to work for got a "title loan",

and his interest payment is 11.5% a month. TOTALLY outrageous, but......hey...

- It's on a big SUV, in which he is usually the only occupant.

- He's a BIG Faux Noise\ Bill-o The Clown fan.

- Need I mention "right wing fundamentalist"? Kinda redundant, I know.

He thinks of Canada (where we live), The Netherlands, France, and all similarly-governed countries as "communist." As a rule, I am foursquare against usury, especially in financial areas that prey on people that can least afford it..... but I can be flexible. :D

[Stinger2]

97. Just think!

Just think, You are in the Military, three tours in Iraq, you come home your wife has just took a loan you can’t pay back?

You have been killing people in two wars for 4 years and now your wife is ready to leave you, your house could be foreclosed on and some jerk says pay me or I am taking your car.

Ooops, News head lines, "People Shot Dead at Payday Loans", I wonder why? on any hot summer day in any town in the USA.

[Historic NY]

98. Legalize Shylocks.....all looking for that pound of flesh.

[NobleCynic]

100. The Consumerist is wrong, I've already seem higher APRs

Here in Nevada, I have literally seen 7000% APR and higher interest rates, and the average is in the range of 300-600.

[MilesColtrane]

101. When are they going to make it legal for them to break your leg if you miss a payment?

[girl gone mad]

106. This shit is legal, but pot will get you thrown in jail.

Some country we live in.

[Echo In Light]

109. Of course. Sick country w/sicko "values."