See the state House and Senate members who voted to restrict your rights by banning pay day loans on my blogg. Restrict choice to "protect" us from evil.
www.theassholelawyer.blogspot.com
The A-Hole
Freedom takes a back seat!
updated by TheAssHoleLawyer on Jun 09, 2008 at 04:34:08 pm Comments: 16
Comments ... #
I've never seen such high interest rate banking flourish so much , hard economic times make many of the poor ,, "owe their soul to the company store". The GOP considers that making more poor people is highly profitable,, saves labor costs. We've really imported a lot of them over the last 7 years, and created more than most of us have seen in our lifetimes.
Jesus would be a union activist if he were alive today.
I don't see how payday loan places are anymore 'sharks' than regular banks are. I've never used a payday loan place,and only know what I've read about the rates they charge. But those rates still seem more fair than what banks do. Thirty years ago, a bank would charge $3. if you bounced a check. Now, it's $38., that repeats every 5 days or so (as they can get away with it I guess). Less manpower is needed today, than a decade ago, with computers, etc. & yet the rates climb. That to me, is more 'shark' behaviour than what the payday loan places do. The payday loan places set one amount per hundred dollars I think - it never increases from what I've read, and can be paid off in payments. People know that going into a payday loan, and if they're 'ok' with it, then so be it. Credit cards can raise interest rates, tack on late fees (even when you pay on time), then hit you with over limit fees if those other fees put you over limit. That is more 'shark' to me than payday loans. Leave the payday loan places alone & have regulations put in place for banks & credit card companies.
posted by starling02 on Jun 07, 2008 at 11:25:02 pm #
The pay-day loan system is a tool. A tool which when properly used is both affordable and accessible. The best analolgy I have heard is to that of a taxi.
If you were going to Miami you would fly, or maybe drive yourself. You would not take a taxi to Florida because the cost on such a LONG trip would be outrageous.
Using pay-day loans is like taking a financial taxi. You would not take out a pay-day loan for a year and therefore pay the 300% annual interest rate because that loan is to LONG. You take a short term loan, 2-weeks, and the percentage rate is 15%. Lower than credit cards, lower than a signiature loan, and much lower than a insuficient funds check fee.
Its about choice and personal responsibility. Every time the government "protects" us from ourselves - personal responsibility is deteriorated, and FREEDOM IS LIMITED. Government only had those specific powers granted to it by our foundational documents. Don't tred on me or my wallet.
The A-Hole
posted by TheAssHoleLawyer on Jun 08, 2008 at 06:53:41 am #
"You take a short term loan, 2-weeks, and the percentage rate is 15%. Lower than credit cards, lower than a signiature loan, and much lower than a insuficient funds check fee."
Your thought process is suspect. Credit cards have this thing called a grace period, so the actual interest rate after 2 weeks is 0. And if they don't have this thing called a grace period, your actual interest rate is still like 15xs LESS than these payday loan places.
I'm hoping you don't make the financial decisions in your household.:)
These places are exploitative. Much like practicing law. It's euthanizing the functionless inflation making loan shark.
the fact that banks do something wrong (like charge outrageous fees for bounced checks) is no justification for allowing other entities to do outrageous things. pay day loans charge 15% over two weeks equals (depending on the compound period but using straight monthly computing) 360% interest. banks, in theory, use criteria and collateral to secure loans. this, of course, fails on a regular basis as banks lobby Congress to ease regulating their industry - see the great depression and the s&l scandals of the late 1980s and now in the mortgage lending failures today.
for the sake of the stability of financial markets and because of the intricate nature of financial tools that you and i can not fully know or keep up with, much less the working poor or under-educated, good regulatory regimens are needed in all aspects of the financial industry, including payday loans.
posted by enjoyeverysandwich on Jun 09, 2008 at 07:57:27 am #
Jesus would be a union activist if he were alive today.
Not sure about his union status, but usury is considered a sin...
Charlatan - resorts to personal attacks - typical but predictable.
Enjoyevery - "two wrongs don't make a right" good argument for parenting, but Uncle Sam is not my parent. Likewise the insulting argument "your to stupid to know better" argument is fallacious. The stability of financial markets is driven by the free market. Pure freedom? No. Some minimal regulation is required, but equitable regulation at a minimum.
Timault/Prime3end - Jesus was a carpenter, but he would be non-union and drive a big dually truck with racks.
posted by TheAssHoleLawyer on Jun 09, 2008 at 04:32:49 pm #
redundant -- I see it!!
posted by TheAssHoleLawyer on Jun 09, 2008 at 04:35:29 pm #
The most the government should do is regulate the industry to make sure the details of the transaction are disclosed. That can't be too fucking difficult, since we have Truth in Lending laws already on the books and which have been tested for years. But stopping the payday loans people? No, that should not be within the purview of our government.
I was told that credit unions to not have to comply with 'truth in lending' laws. Does anyone know if this is true or not?
posted by MaggieThurber on Jun 10, 2008 at 07:04:22 am #
Doesn't seem true, Mags.
Credit Unions meet every Federal and State banking regulatory statute. What they do not do is pay taxes as all "earnings" are redistrubuted to the credit union account holders, which are really shareholders. Banks hate Credit Unions because they belive that the competitive playing field is unfair.
Credit Unions were big sponsors of the payday loan legislation...
Guess that if banks hate credit unions, credit unions hate payday lenders...
It never ceases to amaze me that if one industry is penalized, another one benefits...
posted by MaggieThurber on Jun 10, 2008 at 01:19:10 pm #
it was not a "two wrongs don't make a right..." arguement; it was an "a has no relationship to b" arguement - consult your copy of copi.
check out the federal code - there are extensive laws governing all financial institutions and their transactions and believe me the industry wants and needs the vast majority of them to preclude them all from spiralling into chaos. given the federal insurance program gauranteeing deposits, the u.s. government has every right to regulate - the arguements are over the specifics of those regulations.
i didn't say that "you are too stupid to understand." i said that people don't have the time to learn everything that they would need to know if the economy were truely free of all regulations. you could not do the structural engineering for your house and then perform an appendectemy and then brew the perfect beer - so the government makes rules to ensure that minimum standards rule these indutries to protect citizens from losses - same with banking rules.
posted by enjoyeverysandwich on Jun 10, 2008 at 01:33:53 pm #
Hummmmmmmmmmmmmmmm................
Beeeeeeeeeeer!
posted by TheAssHoleLawyer on Jun 10, 2008 at 06:09:29 pm #
Pay down loans are legal loan sharking. I agree the government shouldn't control this but so many stunningly stupid people are choosing to destroy themselves financially that I can't see this particular thing as especially bad.
On second thought though, maybe people knowingly destroying themselves should be allowed to continue, it's rather amusing.
posted by Reinhart on Jun 07, 2008 at 01:21:47 am #