Nixon pushing payday loan legislation

Apr 20, 2008 | Posted by: roboblogger | Full story: The Topeka Capital-Journal

“This industry must be regulated if our urban communities are to survive.”

Democratic gubernatorial candidate Jay Nixon on Friday renewed his push to pass a proposal restricting Missouri's payday loan industry, saying the practice must be regulated as the economy worsens. via The Topeka Capital-Journal

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kansaschristian

Overland Park, KS

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#1
Apr 22, 2008
 
I hope that Jay Nixon is successful in pushing this legislation to regulate payday loans. And, I hope that other states will take notice. If 36 percent interest rate will drive these folks out of business, neighboring states like Kansas need to be careful not to harbor businesses who cannot abide by Missouri laws. Most businesses would be thrilled to have a 36% margin.
nay-nay

Hillsboro, MO

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#2
Nov 13, 2008
 
I borrowed $800.00 from Americash LLC in 2006. In 2008 of June the interest rate had gone up to $5,758.00 in June. In October, 2008 it is now $13,085.00. How can this be a short-term loan and legal to do people who are struggling this way. The sad part is that the interest never stops. HELP!

Since: Nov 08

The land of the free

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#3
Dec 2, 2008
 
In Missouri, the most an actual payday loan can charge is 75% of the initial loan. Unless they take you to court and then they can add attorney fees, court cost and service fees.

They need to hold them to that 36% if not less. What they will tell you they charge is $15 per hundred for 2 weeks. That way it doesn't sound too bad. What that actually boils down to is 391.07%. Sounds really scary doesn't it.

If everybody indeed wants to eliminate or control this type of loan, then they need to contact their representatives, congress-person, and Jay Nixon. They have to pass this bill!!!!!!

Think about all the elderly that get stuck in these loans. They come in and borrow a little bit to get them by, but then the next month comes around and they need a little more. Then before they know it, they have borrowed the maximum amount. And then they are stuck. Since they have a limited income, there is no way to get out of them. And if they decide not to pay it and default, then the company will tell them they are going to turn them over to the attorney for collection. What most people don't realize is, if you are drawing a pension, retirement, SSI or SSA, you CANNOT be sued.
Jimmy

Dexter, MO

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#4
Dec 16, 2008
 
A payday loan is a choice. It is not forced on anyone. An American (we still are free) can make a choice before the loan is made. I would rather pay 30 bucks for 200 bucks and walk out with the cash in my hand, (real green cash) than to pay my bank 30 bucks for a ten dollar bounced check and not have one dime extra. Think about it. I could max out all my credit cards if I wanted to but I make a choice not to. Leave it to us the people to make a choice and not the government to force something upon us. If you have truly been broke and have no where else to turn they can really help. Just don't borrow what you can't pay back. Duh
Bob Jackson

Dexter, MO

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#5
Dec 16, 2008
 
I don't know anyone that can operate on 36%. Wal Mart will pay $10 for an item and sell it for $20. Payday loan companies sell money which is basically what everbody else does. I have a friend who is an eye doctor and buys frames and lenses and triples his money on them. That is more than 36 percent. Maybe the government ought to regulate that too. Maybe we ought to find out what McDonalds has in a burger and regulate that too. I own a payday loan store and yes we have some people that can get over their heads but most are watching every dollar. Payday loan companies also employ hundreds of people and in these economic times that is something I wouldn't think we would want to eliminate. Yes 36 percent would shut me down and my four good employees would be in the unemployment line.
Nay-Nay

Hillsboro, MO

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#6
Dec 28, 2008
 

Judged:

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To Bob Jackson, I see your point in making a profit, but if you think that putting people in a financial bind with no way out of it is justifiable for a profit, you certainly need to go out of business. People are desperate for money and pay day loans take full advantage of this. You need to hire a lawyer to read the fine print on the contract which people don't have money to pay for. It takes full advantage of the elderly because it is not explained to them what they're getting into, I mean, if they were told these things- pay day loans wouldn't make their money from illiterate and desperate people now would they? Another thing is that payday loans advertise short-term loans, but it eventually becomes a life-term loan which is misleading and greedy. Refinancing their loan does not help people to get through the next payday, it keeps them locked into the loan. It is sinful to loan poor people money and then make it where they can never pay you back.
Nay-Nay

Hillsboro, MO

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#7
Dec 28, 2008
 
To Jimmy, yes a payday loan is a choice, at least you've got that right. The choice you'll have to make when you can't pay your rent, buy food, keep your gas and electric on, buy medicine, or the only transportation you have to get to work is parked on the highway with tickets adding up on it. You must be in la-la land if you think that minimum wage pays all the bills. For your information, the working poor don't get bonus pay, the CEO's do. The prices on gas, groceries, healthcare and utilities are going up, but my paycheck isn't. If your rent is $600 a month, and your paycheck is $450.00, what choice would you make? So, for a $150 loan, I'll be paying as much as $500 or more with overdraft fees,interest and late charges. Yes, it's a hell of a choice to make when it comes to feeding your kids, being homeless, having no heat or lights, and going to the hospital because you couldn't afford to pay for your medication. If this was you, what choice would you make since you have all the answers? If any of us had another choice payday loans wouldn't exist, that's why thye're setting up shop throughout the country.
Nay-Nay

Hillsboro, MO

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#8
Dec 28, 2008
 
I am in full support of Jay Nixon regulating the interest rate on pay day loans. When you don't have regulation laws, everything gets out of control. If credit cards and banks interest loans are regulated, why shouldn't pay day loans interest rate be regualated? In fact, pay day loan's interest rates are the highest in the country.
Rich people don't take out pay day loans, poor
people do. It's a known fact that the poor is prey for pay day loan businesses.

God's law says, "If thou lend money to any of my people that is poor by thee, thou shalt not be to him as an usurer, neither shalt thou lay upon him usury." "If thou afflict them in any wise and they cry at all unto me, I will susrely hear their cry." (Exodus 22:23,25) Come on Jay Nixon and do your thing.
Nay-Nay

Hillsboro, MO

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#9
Dec 28, 2008
 
Bob Jackson wrote:
I don't know anyone that can operate on 36%. Wal Mart will pay $10 for an item and sell it for $20. Payday loan companies sell money which is basically what everbody else does. I have a friend who is an eye doctor and buys frames and lenses and triples his money on them. That is more than 36 percent. Maybe the government ought to regulate that too. Maybe we ought to find out what McDonalds has in a burger and regulate that too. I own a payday loan store and yes we have some people that can get over their heads but most are watching every dollar. Payday loan companies also employ hundreds of people and in these economic times that is something I wouldn't think we would want to eliminate. Yes 36 percent would shut me down and my four good employees would be in the unemployment line.
If you can't operate a business off of 36% then it's safe to say that you would do much better locking people into a loan at an interest rate which locks the borrower into never paying the loan off. I mean, the double standards here is that loan predators like yourself wants sympathy for not being able to prosper off of poor people's circumstances.
Nay-Nay

Hillsboro, MO

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#10
Dec 28, 2008
 
Bob Jackson wrote:
I don't know anyone that can operate on 36%. Wal Mart will pay $10 for an item and sell it for $20. Payday loan companies sell money which is basically what everbody else does. I have a friend who is an eye doctor and buys frames and lenses and triples his money on them. That is more than 36 percent. Maybe the government ought to regulate that too. Maybe we ought to find out what McDonalds has in a burger and regulate that too. I own a payday loan store and yes we have some people that can get over their heads but most are watching every dollar. Payday loan companies also employ hundreds of people and in these economic times that is something I wouldn't think we would want to eliminate. Yes 36 percent would shut me down and my four good employees would be in the unemployment line.
So, is it safe to say that your only interest is to make huge profits off of the poor's unfortunate circumstances? If you can't operate off of 36%, then you need to consider how would someone be able to pay interest rates up to 250%. This is one example of loan predators who seem to think on double standards as for them making huge profits by locking customers in to so-called, short-term loans-as long as they're locked in, the money keeps rolling in.
MsManager2U

Macon, MO

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#11
Dec 30, 2008
 
Payday loans are nothing but a big scam. These people charge at a minimum 391.07%. Can you imagine your home loan or car loan being that high? And the elderly do definately get caught in these. But what most of them don't know is that they CANNOT be sued if they default on them. The company has to eat the loss. They will threaten them and call and send letters, but if you're on any kind of disability or retirement, you are not able to be sued. It is law.
Char

United States

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#12
Jan 7, 2009
 
For one thing on the payday loans, it is borrowing money, thus, paying it back. It is dealing most with bad credit, and husbands and wives who don't want the other one to know what either one did. If you can't pay it back, don't borrow it. 391.07 % is 15$ per hundred.

Since: Oct 08

Macon, MO

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#13
Jan 8, 2009
 
Char wrote:
For one thing on the payday loans, it is borrowing money, thus, paying it back. It is dealing most with bad credit, and husbands and wives who don't want the other one to know what either one did. If you can't pay it back, don't borrow it. 391.07 % is 15$ per hundred.
And sometimes you get both the husband and wife borrowing money. I know quite a few people that have had these loans and end up in such a financial mess that they end up filing bankruptcy. The elderly will borrow it thinking that it is going to be a one time thing, then when the first of the month comes around and they discover that the $100 they borrowed is now going to cost them $132 or $133, they are struggling again. And a lot of them take out the full $500, then there is an extra $166 gone at the beginning of the month.
resident

United States

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#14
Jan 9, 2009
 
everyone knows that if you borrow money, you pay it back, loans are based on income, so the public knows what they are doing, and they shouldn't go to every payday place in town or the county.

Since: Oct 08

Macon, MO

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#15
Jan 15, 2009
 
Yeah and in this day and time, I bet there are a lot of people that truly intend on paying them back until one day they go to work and find out the company they are working for is shutting down. Then they probably worry more about keeping the house and paying all the utilities.

Since: Mar 09

Ahmedabad, India

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#16
Mar 24, 2009
 
I personal advice is that we have examine the finance company by our self and also ask about it to our friends and other relatives. We personally check the prospectus of company.

Thanks

Since: Mar 09

Vadodara, India

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#17
Mar 25, 2009
 
Hello Friends,

Please let me know, how secure online payday loan? How to apply for it? I need some urgent cash.
Bob

United States

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#19
Apr 1, 2009
 
did you like the movie Slumdog millionaire?
Concerned

United States

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#22
May 4, 2012
 
No reputable payday lender (and yes, they DO exist) will evade the Fair Debt Collections Act. And the interest rate is subjective. As is discussed with any potential customer, these are short term loans. They are not meant to run the length of a year and therefore do not get to that point unless someone continually takes them out, which, surprisingly, is NOT the typical payday loan customer. The high interest rate is to compensate for the very high risk the companies take for customers that do not pay their loans back. They are more highly regulated than your bank, which can use more damaging tactics than payday lenders. The average payday loan customer is looking for a short term solution when a bank would laugh them out the door. Also, many payday loan customers have a much higher income than the employees these initiatives would seek to put back in unemployment lines. They are not loan sharks. The majority don't even sue. The funny thing is that the people who end up in a bad spot and become in debt to a lender can contact the company and usually come to an amicable solution. All they have to do is call and it can be resolved. To say that the industry is predatory towards the poor is very far reaching. Many lenders do not advertise outside of an established customer base. Also, the language in this initiative can be deceptive. A 36% interest rate would put many out of work. The truth is that these businesses make just enough to pay thd bills and the employees and don't make the vast amounts of profit some claim they do. As for anyone who has dealt with a bad company, I am deeply sympathetic, but also want to make it known that there are companies, especially one of the largest in the nation, that go out of their way to help the customer in any way they can. That's what they are there for...to help someone out of a tighg spot.
Claud

United States

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#23
May 29, 2012
 
smithj wrote:
Hello Friends,
Please let me know, how secure online payday loan? How to apply for it? I need some urgent cash.
To find [url=http://www.prweb.com/rele ases/2011/9/prweb8815140.htm]p ayday loans online[/url] you need to look for reviews of payday lenders. Do not use the first site you come across - do the research first. Try Facebook also and see maybe some of your friends have recommended any legit online loans. Another option is to check the [url=http://www.bbb.org/chicag o/accredited-business-director y/]BBB's business directory[/url]. They list accredited lenders and also reviews.

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