Team Murder No Brain No Headache.

24Mar/08Off

Worse Is Better (For Us)

There is a frightening article at Reuters about the expansion of payday loan operations as the housing/mortgage crisis expands. No one has labored under the illusion that those paycheck loan places were there to help any one but given their rate of expansion in Ohio:

Bill Faith, executive director of COHHIO, an umbrella group representing some 600 nonprofit agencies in Ohio, said the state is home to some 1,650 pay day loan lenders -- more than all of Ohio's McDonald's, Burger Kings and Wendy's fast food franchises put together.

With outrageous interest rates they're a sure way to go from being broke to completely fucked forever in just a few short steps. I wonder how long it will take for companies like this to partner up with private prison companies to build debtor's prison equivalents and play both sides of the court. Chances are that the savings won't be passed on to you.

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  1. You consumer advocates and do-gooders are telling me I am too dumb to make a $30 financial decision. Yes, it is about $30 (fee) for a $200 payday loan. You do-gooders are telling the world that I’m a victim. You do-gooders are telling the world that I’m uneducated. Well, I’ve had enough. I have thrown in the towel with you ignorant people. I’m no longer a democrat (nor a republican either). I’m absolutely not voting the party line anymore. I make $50k per year, own my own house (well, me and the bank), I have a high school education, and own my own car. And, yes, I have a bank account, too. And, YES, I DO PAYDAY LOANS ON OCCASION. I’m no idiot. I only get payday loans to avoid bouncing checks BECAUSE IT IS CHEAPER and because I don’t manage my money as well as I should! But, let me tell you something else. I pay a whole lot more than $30 per month in taxes. I pay property taxes and income taxes, but our schools are terrible. I pay sales tax and gas tax so that my government can send money to countries I can’t even name. I pay telephone tax, utility tax, and fuel tax, and my government still can’t balance their checkbook. I balance my checkbook, and on occasion it takes a payday loan to do it. Of course, if you don’t have to balance your checkbook, you wouldn’t understand!!!!! If you all want to put the hurt on the payday loan industry, why not work on spending tax money wisely and lower and/or eliminate some of the taxes I pay. Then, I wouldn’t need a payday loan. It’s $30! Please get out of my life all of you do-gooders and politicians.

  2. Pretty sure you’re a cut and paste fictional person but in a rare moment of optimism I’m going to operate on the assumption that you’re not invented out of thin air and reply:

    So, as a person who occasionally needs financial help with keeping up with bills you are a fan of unregulated interest rates? Eliminating taxes has done wonders for the economy — haven’t you felt the burden of tax cuts already? Heck, if we eliminated taxes entirely we could all live in solid gold houses. Unfortunately, they wouldn’t have running water or electricity but at least then you’d feel as if your money wasn’t being forcibly taken from you.

    Don’t lump me in with do-gooders. I’m pretty sure that I exclude myself from that category by equating your toolish-ness with the need to revoke your right to oxygen. I empathize with your lack of education as well as your cognition deficit. I do recognize and applaud your ability to boldly take the side of people who would skin you alive to sell your skin and I have some great penny stocks to sell you.

  3. I am not fictional, and I am not a cutter and paster. I am a fan of options for consumers, and I am tired of people trying to take away options that work for me just because there are some people who couldn’t help themselves even if they were given a million dollars tax free! The interest rates are regulated, they were set years ago, and have not changed since. Have you ever even gotten a payday loan? If not, why are you even talking about them?
    Here is my main problem with the attack on payday lenders; if I borrowed money from a friend, and then was not able to pay him back, I do not blame my friend for lending me the money, it is my fault and no one else’s. We need to start holding people accountable for their actions, the greed in this country is overwhelming.
    Here is a little cut and paste for you, from an article in the Wall street Journal by ex senator and presidential candidate George McGovern, he says, “[p]ayday lending bans simply push low-income borrowers into less pleasant options, including increased rates of bankruptcy,” Mr. McGovern rightly poses the question: “Why do we think we are helping adult consumers by taking away their options?”
    Instead of taking away this option, why not fight against it. Open up your own loan store and find a way to charge less. Whatever you do, stop bitching and start doing something about it. Oh, and I will take as much oxygen as I want, that is still free!

  4. Fine. You exist but you still managed not to read the article which says in OHIO that there are no current regulations on the interest rates of short term loans. There are now more sources of high interest loans than there are fast food restaurants in the state of Ohio. That doesn’t point to stability and choice.

    Of course, I’d be willing to take your points a little more serious if you didn’t drift in a on Google ‘who links to’ search from the original article especially on what is primarily a tech blog with the general tendency to give idiots about as much attention as is necessary to send them wooshing back to whatever amateur lobbyist/free market advocacy tar pit they limped out of. I noticed this article, read it, and was a little alarmed at the trend towards utter financial destruction. You’d need to actually read and understand both the source article and what I’ve written to understand that though so I’m not optimistic.


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