Payday loans growing problem

Phil Betourne works full time at a grocery store in Canton and makes enough money to, in his words, ``get by.'' But Betourne is not getting by. Full Story
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Betamax

Akron, OH

#1 May 20, 2007
I'm not sure what the legislature and the governor wants to do about this. These folks admittedly stated that they needed the money and that there wasn't anywhere else for them to obtain it. Are we goin' to legislate the loan industry jes' the same way that we've legislated businesses right to operate in a fashion they desired ( i.e. smokin' ban ).

Mebbe the liberal boobs can pass a law that says that businesses aren't allowed to make a buck, but required to stay in business.
Mike from Akron

Avon Lake, OH

#2 May 20, 2007
Payday lending is legalized loan sharking. It should have never been, and should be stopped. "Loans" are one think, stealing from those that don't have it in the first place is something else entirely.

Since: May 07

Indianapolis, IN

#3 May 20, 2007
My opinion? Anyone that is shortsighted enough to use those places deserves to have their money taken.
John from Springfield

Warren, OH

#4 May 20, 2007
I think that the government needs to step in and make these places accountable for ripping off the people that are too ignorant to realize they are being screwed. This is leagle loan sharking. what is next leagal crack houses?
John from Tallmadge

Warren, OH

#5 May 20, 2007
These places need to shut down leagal or not they are preying on the desperate and poor people of our towns and for nothing but a profit. this is nothing but legal loan sharking!

Since: May 07

Indianapolis, IN

#6 May 20, 2007
John from Springfield wrote:
I think that the government needs to step in and make these places accountable for ripping off the people that are too ignorant to realize they are being screwed. This is leagle loan sharking. what is next leagal crack houses?
Once again, someone steps up to the plate with the suggestion that government should babysit people who are too foolish to think for themselves. How's this for a thought - that people be responsible for their FREELY-MADE choices? By the way, there ARE "leagle" crack houses - they're called "bars". FAR More people have ruined their lives with alcohol than ever did with crack.

Since: Mar 07

Akron, OH

#7 May 20, 2007
Mike from Akron wrote:
Payday lending is legalized loan sharking. It should have never been, and should be stopped. "Loans" are one think, stealing from those that don't have it in the first place is something else entirely.
Here's y'alls chance to give an informed opinion Mike ol' buddy.

What's the alternative, iff'n places like Payday are closed down?? The article states clearly that all of the other bankin' institutions won't touch these people.

Are y'all goin' to legislate forcin' the bankin' institutions to address these folks??? They don't payback the Payday folks now, are y'all suggestin' that they will turn into banner citizens and pay the banks on time and in full???

One of the things that this investigative reporter ( must be one of Dyer's protege's ) didn't mention, was the losses that Payday takes as a result of doin' business with these folks.
CLH

Akron, OH

#8 May 20, 2007
The customers of Payday lenders have made the well-informed choice to patronize payday lenders. They knew exactly what they were getting themselves into and made the decision anyway. Prior to that decision, they 'chose' to not save the precious little extra they did have, they 'chose' to follow a path that has led to a low-paying job cycle, they 'chose' to spend beyond their means, they possibly even 'chose' to spend money they could have saved or spent on savings, auto repairs or the like. Instead, they possibly spent the little bit of extra they had on things completely unnecessary (think cigarettes, alcohol, gambling, tattoos, cell phones, designer clothes.....think necessities vs. niceties). So, the people utilizing payday lenders walked into these establishments having already made a host of bad decisions and now they've made another, get the government wants to curb payday loan rates. Why? To protect people from themselves? Banks will not loan them money for a reason, so paying a fee to borrow money for three weeks (usually $15 per $100 borrowed) is the price they pay to borrow from the only company that will loan them money. Sorry, I do NOT feel sorry for these people - at all! They chose to pay for a service and have a lot of audacity to complain.

How do they break the cycle? It is easy: DO WITHOUT. In 21 days when that $500 loan comes due, you take a $400 or $350 loan and CUT THE EXTRAS or DO WITHOUT (see above) for the next 21 days. If need be, in another 21 days, you take another loan for $250 or $200 and CUT THE EXTRAS or DO WITHOUT for another 21 days. And so on until further borrowing is unnecessary.

Here are a few more ideas to save money:

Car VS Public Transportation
Smoking VS Not
Designer clothing VS Goodwill or Discount Stores
One job VS Two jobs
Restaurants VS Home cooked meal

If people took a good, hard look at their finances and exactly what their money is being spent on, I am sure that 99% of payday loans would become unnecessary. But that would require sacrifice, right? Who is willing to do that? That might require one to live within their means.
lewis_medlock

Erie, PA

#9 May 20, 2007
Mike from Akron wrote:
Payday lending is legalized loan sharking. It should have never been, and should be stopped. "Loans" are one think, stealing from those that don't have it in the first place is something else entirely.
i disagree entirely. No one makes people take out loans at such high interest rates. The problem lies with a society where conspicuous consumption is the norm. being a libertarian, I have no issue with people doing what they want with their money...its theirs. But when a guy making 20,000 USD a year decides he will try to live the lifestyle of a guy making six figures, thats when we run into problems.
Not everyone in our society will own the new SUV, go to Myrtle Beach in July or have that nice house in Green.....but most folks think they deserve it , no matter if they have the means for such a life.
Hank C

Akron, OH

#10 May 20, 2007
What these payday loan places are doing is usury, plain and simple. They are vile predatory businesses that either need to change their practices or go away.
Hank C

Akron, OH

#11 May 20, 2007
Some interesting background on usury:

http://en.wikipedia.org/wiki/Usury
How about this

Loudonville, OH

#13 May 20, 2007
Great suggestion for Hank and Mike -

I really think you should show the payday lenders a thing or two and get together to start your own business here. Open your own loan center and undercut the outrageous fees and rates of the payday lenders, with an iffy-at-best chance of being repaid. Now, I'm under no illusion that you think you'd do anything but lose your shirts doing that. Which begs the question of why you feel entitled to tell others (both the investors/lenders and borrowers) what they should be able to do with -their- money.

Unfortunately these places exist for a reason. And there's a reason that nobody is moving in to undercut them and take away the business.
Teddy

Lakewood, OH

#14 May 20, 2007
What is bad for the economy is usually good for the individual. Live small. Get out of debt and do not let the forces that preach hyper consumption control you.

We applaud those who cast a weary eye to the elected official while following whole heartedly the dictates of the advertiser.

Bureacracy, hyper-consumption and speculation. They are calling from inside the house!
bobbi

West Salem, OH

#15 May 20, 2007
what did people do for money when cash was tight? they go to a pawnbroker. who, by the way, is NOT allowed by law to charge the fees and interest rates payday loans can charge. so were is the fairness in that? The poor can still get cash, but in return they must put something in pawn (like their precious tv). and if you don't pay back that pawn loan, you lose your tv. unlike at Payday loans, if you don't pay back the loan you ARE CHARGED with cashing a bad check. And for the ones giving you cash, you get charged for writing a bad check. I counseled a couple that were charged, they just couldn't pay them back. They kept taking out new loans to pay the old ones (proving they 'knew' what they were doing). I'm still waiting to see if the lose the case, and if they will get felony charges against them. Bankruptcy won't erase these debts either. There is no escape. So, the only option that is safe are..... Pawn shops. legal, low cost, and fair to all. close down those shady fancy payday scams.
May Fong

Warren, OH

#16 May 20, 2007
They Took away These type of loans from Organised Crime. My dad called them five and tens. U borrow 5 then you have to pay back 10. If you dont want your thumbs broke. They law doesnt allow for this type of lending. And should be regulated. If not banks and visa companys are going to be next. Think about allowing visa companys to charge you. 125% on everything you borrow - charge per month.

Since: Mar 07

Akron, OH

#17 May 20, 2007
Hmmmm, looks as iff'n my ol' buddy Mike would rather practice his accusatory reparte's in that other thread, than stand up for his remarks here. Too bad.

Mebbe he's busy gettin' a loan.
CT Halfhill

Hoffman Forest, NC

#18 May 20, 2007
I guess I'm as dumb as the people who use these vulture lenders. I thought we had usury laws.
JJP

AOL

#19 May 20, 2007
I had to use payday loans twice while I lived in Ohio, both times for emergency car repairs that were almost 1,000.00 dollars.

However I knew that I would have the income to pay them back, and I did. Still, it's not a good way to have to borrow money.

All I can say is here in NC, they put a stop to it, there's a few places left, but they can not basically rape a borrower on interest.

So they can serve their purpose, they just need to be regulated a bit better on the interest charges.

And if one keeps finding themselves having to partake of these services, one maybe should look at getting a part time job for a bit.
Cloverine Fleetwood

Aurora, OH

#20 May 20, 2007
May Fong wrote:
They Took away These type of loans from Organised Crime. My dad called them five and tens. U borrow 5 then you have to pay back 10. If you dont want your thumbs broke. They law doesnt allow for this type of lending. And should be regulated. If not banks and visa companys are going to be next. Think about allowing visa companys to charge you. 125% on everything you borrow - charge per month.
May,

Your story about your Dad is right on the money and much appreciated. It led me to recall the scene in the garden from The Godfather movie when an aged Don Vito Corleone was pouring out his heart to son Michael, the new head of the family business. Don Corleone said he did not want his son to have to do what he had done. His dream was that Michael would be "Senator Corleone", "Governor Corleone", or the like, not another Don Corleone. Michael assured his Father saying, "We will get there".

Government now profits from such traditional organized crime activities as numbers, casinos, race tracks, liquor, so-called skill games, prostitution, and loans. Michael was right; we are getting there. A reasonable person could conclude that our government has decided to combat organized crime by supplanting it.

I feel for people who have been victimized by payday loan operations. I would like to see a list in the Beacon of the persons and businesses that own and are profiting from the misfortune of others. It is a shameful business.
john max

Massillon, OH

#21 May 20, 2007
there not near as bad as our politicians and or government, at least you get something out of them..

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