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| Wed, Dec. 02 - - Mobile - RSS | |
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Payday lenders are nothing like banks--they're predators
Date published: 1/2/2007
I would like to respond to Lawrence Meyers' letter defending payday loans ["Payday loans aren't a bad deal ," Dec. 26]. In order to defend the outrageous rates that payday lenders charge, Mr. Meyers states that banks have made much more on NSF and overdraft fees than payday lenders make on their rates. The difference between payday loans and a checking account is that payday loans are a predatory lending practice targeting low-income households and people who have to live paycheck to paycheck. Banks hold money that is provided to them by their customers, and they charge NSF and overdraft fees as a penalty for spending more than is available, just as credit card companies charge an over-limit fee when you exceed your credit limit. To defend the highly predatory practices of payday lenders, Mr. Meyers may as well be defending a loan shark, only instead of breaking a bone when you don't pay them back, the payday loan may be the straw that breaks a family's financial back. Charles J. Shumar Stafford
Date published: 1/2/2007
My Rebuttal
(posted by
CJKeys
, Sep. 25, 2007 2:41 pm)
Banks arent a predatory lending practice, theyre places to store your money until you need it. Payday loans are financial predators looking to milk the down on thier luck of their last red cent, they arent the only ones, staying on subject though bank accounts dont target those who are in dire need of money, payday lendors do. Additionally if you dont make enough to pay for the supriose bill that prompted the payday loan and live check to check you could end up in a vicious cycle of taking loans to pay the
continued...
(posted by
lmsmedley
, Sep. 25, 2007 2:41 pm)
NSF and merchant penalties of $55-60 PER CHECK.
It logically follows that bank fees are far worse than a
payday loan, and more aptly fit Mr. Shumer's description as
the"straw that breaks a family's financial back".
Mr. Shumer needs to educate himself
(posted by
lmsmedley
, Sep. 25, 2007 2:41 pm)
I want to thank Mr. Shumer for proving my point regarding
the relative value of payday loans vs. bank NSF and
overdraft fees (FLS 1/2/07). He correctly states that bank
fees are a penalty for spending more than is available,
which is also known as "short-term credit". Payday loans
are the same thing.
So when a consumer is faced with his multiple monthly bills
of, say, $400, then his choices are to take out one payday
loan at a cost of $60 (national average), or bounce
multiple checks and incur NS
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