Comments on: Payday lenders only ones who can’t make money on 36 percent interest rates

By: payday loans

payday loans — Thu, 15 Jul 2010 08:25:41 +0000

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By: noteletrack payday loans

noteletrack payday loans — Thu, 10 Jun 2010 19:00:58 +0000

That is so dumb! How can someone seriously stand up and say that they cannot make enough money with 36 percent interest! That means for every dollar, they’re making an extra 36 cents. For every hundred, 36 dollars. That’s a lot of money!

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Make Money on YouTube — Fri, 28 May 2010 17:27:27 +0000

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By: andersonrichie1

andersonrichie1 — Wed, 12 May 2010 06:20:46 +0000

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By: alfromla

alfromla — Thu, 25 Mar 2010 02:29:28 +0000

The problems is that payday lenders aren't making money at 36% is because more than 80% of people who borrow money from payday lenders will default and many will never pay back. This is simply because payday lending is geared toward a fast approval loan system where they take a risk to evaluate one's credit by simply his or her job or paycheck as there is no creditcheck with payday lending in most cases.

By: alfromla

alfromla — Wed, 24 Mar 2010 21:29:28 +0000

By: jkursman

jkursman — Mon, 15 Mar 2010 16:21:40 +0000

Megan - Both you and Pallavi are ill-informed! There is a significant difference between 36% fees and 36% annualized percentage rate interest. Why don't you try being honest with your readers and compare apples with apples!

A payday loan is a short-term product(usually two-weeks). Credit cards are not!

Payday loans are a short-term loan, often used by individuals who cannot obtain access to credit cards or other sources of short-term financing and credit. They compete against the "overdraft protection loans," charged by banks and credit unions as well as late penalties, bounced check fees from banks and merchants, over-drafted account fees, etc.

Under your premise:
A consumer using an ATM to withdraw $100 could only be charged $0.10 by a bank or credit union. By contrast, they are currently charged $4-$5

A consumer overdrafting the average $36 check for 4 days could only be charged $0.39 by a bank or credit union. By contrast, they are currently charged $27 plus.

And payday lenders would only be able to charge $1.38 on a $100 loan. Meaning, if one customer defaulted, it would take more than 72 additional customers just to break even. And, that's before salaries and benefits, store front rent, utilities, taxes, etc.

The debate over payday loans is a simple one:

The average payday loan in Iowa has a fee of about $15 per $100 borrowed for two weeks. That's $0.15 per $1.00 borrowed.

By contrast, the average bank and credit union overdraft protection "LOAN" (according to the FDIC) has a fee of $27 + per $36 borrowed from three or four days. That's $0.75 per $1.00 borrowed.

In some cases, banks now charge up to $40 per overdraft check and after 4 days, charge an additional $8 per day charge. In this case, the fees on a $100, two-week "overdraft protection LOAN" from a bank or credit union equal $128. That's $1.28 per $1.00 borrowed.

It is critical that the community has a voice in public debate, but make sure it is the CUSTOMERS not the "self-proclaimed consumer advocates", often funded by banks and credit union, who are being heard!

The following is a link to voices of actual payday customers!

http://www.youtube.com/watch?v=L6Iy-Z0WPQA

By: PaydayLendingRep

PaydayLendingRep — Fri, 12 Mar 2010 21:31:36 +0000

Payday lenders aren't exceedingly stupid businesspeople, which is why they charge interest rates that seem high when computed as annual rates. The charge for a $100 two-week loan is only about $15, and payday lenders provide that loan to people who need money for legitimate emergencies.

By: annawoods04

annawoods04 — Fri, 12 Mar 2010 10:09:36 +0000

I'm glad to see someone's fighting for the consumer choice to use payday loans! The opinions of millions of hard-working payday advance customers have been lost in the debate over payday lending. Their voices are overshadowed by critics who have never actually used the service.

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