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Lynchburg is joining the fight against payday loan companies. [NA]
The standard objection to payday loans is that lenders charge egregiously high interest rates and mislead borrows into loans that aren’t payable. There has been some talk about Charlottesville authorities limiting the interest rates that these businesses can charge.
My thoughts? Well, if the rates were so egregious and unfair, why wouldn’t more payday loan companies pop up and offer more reasonable terms? It seems like there is probably a lot of risk in lending to people who need money before their next paycheck.
What are your thoughts?
Popularity: 3% [?]
Tagged as: Charlottesville, loans, Local Business, minorities, Payday, Questions
your a rapacious little capitalist aren’t you thor? FREE MARKET! INVISIBLE HAND! umm… BLOOD OF THE WORKERS!
AND SO ON!
From the article:
Well said.
you can find one of these “Payday” places on every corner in Lynchburg, they plant them all over poor neighborhoods and take advantage of these people. I’ve counted 6 within a 1 mile radius, because I when I moved here this past summer from C-ville I noticed they were everywhere. Much like New Orleans, where these places and liquor stores are on every corner. It’s F’d up.
and next to OTB. Does Charlottesville have that?
Wow, Caroline, that’s a LOT. I like the idea of an educational campaign as a go-with.
Talking of poor…. Lilith are you solvent again, or will we see you sneaking out of your local Payday loan shop clutching a handful of 10’s heading towards ABC?
No floozy, that will be me.
In a lilith wig and giant red panties.
HAHAHA… that look will get you laid my boy… but you may need an inflatable cushion to be able to sit down for a week.
Yeah, I get enough of those kinda offers at the cafeteria. I shoulda been born gay, I swear. Damn genes!
God Im feeling pervy today, and the third base third grade style of that poll over there on the side bar is just sooo innocent. I may have to get banned for the day, lest I sully my good name… *cough cough*
Thor–According to an article in yesterday’s Progress, competition to the payday loan industry is springing up– “Langley Federal Credit Union is one of a growing number of credit unions, churches and nonprofit organizations that are providing low-cost cash advances as states like Virginia grapple with a growing payday loan industry and those left drowning in debt because of it.”
Personally, I think the payday loan industry is a disgrace and the practice should be illegal.
“Well, if the rates were so egregious and unfair, why wouldn’t more payday loan companies pop up and offer more reasonable terms?”
I don’t have the statistics on hand, but they say that the vast majority of people who get a payday loan can’t stop. They’re stuck in a vicious circle, and that becomes mighty profitable when your fees are 20 percent.
All of these short-term loan establishments sprang up a couple of years ago when the General Assembly passed ordinances permitting them, now that they’ve seen the results, they’re forced to legislate these establishments out of business, or regulate them out of profitability. I for one am getting tired of state government that can’t foresee the reasonable consequences of its actions. The laws they passed virtually guaranteed that everything that they now complain about would happen. Its the same as the abusive driver fees, either no one voting on this legislation is reading it, or there’s a serious failure to comprehend going on.
This predatory behavior could be stopped by just erraticating the loophole that allows these vermin bloodsuckers to take advantage of others, I believe it is a loophole in the interest rate regulation on short term lending that is to blame for the entire problem. (Anybody have some dets?)
Why have laws about maximum cap on rates if the don’t apply across the board?
And no hips anymore?, what about eychdee or doofey?
You are correct 2o4. As the loans are for a period of less than a year (or what have you) they are exempt from state usury laws. Many people are unable to pay off the loan at end of term, so they role it over into a new (exempt) loan. Scumbagery!
And yet these folks donate , I believe, 100’s of thousands of dollars to state legilature so you know pretty much whats gonna happen.
Nothing.
no hips? WTF?
TwoOFour said….”This predatory behavior could be stopped by just erraticating the loophole that allows these vermin bloodsuckers to take advantage of others…”
So what does this involve… take the loophole and move it around in a variety of fast and variable directions? That is an awesome idea… let’s submit to Congress tout de suite.
I seee the human dictionary is back from city hall… cut her some slack, she’s fresh of the viking boat.
/mmm… fast and variable directions
That would be ‘off’ then Byo..
And I have a new a-hole so I can talk AND crap at the same time now, instead of just talking crap. Hey ho.
Yeah, I knew you’d nail me on that as soon as I saw it up there. I was preparing my defence, but alas there was none. I was working a kind of temporarily faking a bad italian accent… but it a didda notta work out. Pastafazool!
flooze, I really don’t want to think about you well, taking a crap. Note to self: floozy’s hot, she’s hot, floozy’s a hot chick.
Oh C… we are all just basically tubes…. everyone craps except for The Queen and Ethan… he’s just full of it.
We are not a big truck that you can just dumpd something on! We’re a series of tubes!
http://www.youtube.com/watch?v=_cZC67wXUTs
TUBES!
two other scams that prey on the financially strapped:
(1) loans given with your car as collateral (high interest scam), and
(2) “get your tax refund instantly when you come to our tax return shop” = it’s actually a high interest loan + big fees. AND if your refund isn’t as big as “they” said it would be, you’re on the hook…
Sir Scamsalot
number 1 is just dumb. that one preys on dumb people.
number 2 is whoa creepy. if anybody on here sells these types of loans, let us know and we’ll write a witty satire of the ethics mantra that marches through your head as you process a tax form. it will be hysterical.
all the tax preparers offer the instant rebate
As for dumb people: The vast majority of people are financially illiterate (witness the mortgage crisis and the CC industry) That doesn’t mean darwinian rules should apply
touche, but they do apply. the thing about darwinian rules is that they result in a lot of individually unfortunate scenarios… that’s why we try to have ethics… but the truth is they’ll never stop applying. it’s how we got here.
Please tell meI don’t have to give the “social Darwinism = fascim” lecture
no, no you don’t have to do that. i’ve heard it; i’ve even given it.
there was an article in either the hook or the c-ville a few weeks ago about
(1) loans given with your car as collateral (high interest scam)
& the victim said she “didn’t think they would REALLY take” her car.
that goes way beyond (below?) financial illiteracy.
Store credit “interest-free for 90 days” can be a hassle zone too. A reputable local sporting goods store sold a friend of mine a kayak or something that way, and the paperwork he got back from the finance company was marked up 20%. I think he’s looking forward to many hours of roundabout phone calls. Welcome to socially engineered customer ’service’, where they have policies to see if you will call back at least three times before they stop lying and give you the refund or whatever. Credit card companies, etc., are using this customer service call-back scam, confirmed by a study at Harvard Law School.
We need to teach in high schools how to handle adult finances. Every graduate should know how to prepare their own taxes and be familiar with insurance and medical forms.
Banks don’t give loans to poor people. That’s why these usurers exist.
Re: #35, I agree 100%. Unfortunately, our high school students can accurately solve complex analogies and math problems, write fantastic papers, and make all of their choices fall under either A, B, C, or D on a multiple choice test, but they don’t know anything about personal finance.
It’s viewed as an “elementary” type of thing to teach, but HS students need it so bad and they’re just not getting it. AP classes don’t teach balancing a checkbook or budgeting money, or even (ironically) what APR is!!
I totally agree with the Grape.