Payday loan-check advance business questions.

[EE_Bota]

If the government sets the interest rate max, but has no favorable influence on defaults, they are harming the payday loan business through ignorance, or through direct intent. It reminds me of that commercial where Charley Brown and Lucy both agree that the product being advertized should cost 5 cents. Arbitrary and capricious, yet clueless.

 

[CobyRupert]

If the government sets the interest rate max, but has no favorable influence on defaults, they are harming the payday loan business through ignorance, or through direct intent. It reminds me of that commercial where Charley Brown and Lucy both agree that the product being advertized should cost 5 cents. Arbitrary and capricious, yet clueless.

The pay day businees can either accept or reject the influence (risk) on default. That's not gov'mints business.

Why does the government set limits on what a business can charge for food, water, gas, generators after a natural disaster? Supply and demand right? Capitalism! Laissez faire! Free markets! "Gouge" is a dirty word invented by liberals! - They must hate freedom!

 

[EE_Bota]

The pay day businees can either accepts or reject the influence (risk) on default. That's not gov'mints business.

Why is that interest rate the governments business unless they are targeting that business? It is a legal business, and many are up and running, and when the government does things like that, they drive these businesses out of business. Maybe the government doesn't need the tax revenue.

Oh, wait..That very thing may happen to the government itself...I hear interest rates are starting to try to struggle upward..and that will ruin us. The government runs its own finances way worse than and poor dude who shows up to a payday lender.

I wouldn't say liberals hate freedom, and I don't know why you are making such claims.

 

[fordmantpw]

The pay day businees can either accept or reject the influence (risk) on default.

And that's exactly why they charge (and should be allowed to) such high interest rates. They put their money at risk, and should be able to cover that risk with high interest. That's why banks charge higher interest rates for lower credit ratings. It has nothing to do with what's right and wrong.

 

[patrick_g]

Not ALL people in this, or any type of business are bad people.

Right, some contract killers are very moral, I'm sure. Probably tithe, observe Lent, etc.

No one forces you to frequent prostitutes or gay bars.

 

[fordmantpw]

Right, some contract killers are very moral, I'm sure. Probably tithe, observe Lent, etc.

No one forces you to frequent prostitutes or gay bars.

And no one forces you to frequent payday loan places either.

 

[murphy1244]

When they were raping people in the real estate market, sure.. They had to give you a small token to make you feel good

How were they raping people? I've not heard of this attack, what state did that happen in?

 

[tractorshopper]

Ever use an ATM at a bank or gas station other than your bank? Pull out a $20 and pay $2.50 to the ATM bank or network owner and another $2.00 to your bank for using another network on an electronic transaction with no labor involved. That's 22.5% interest on a simple single transaction. If you consider that a loan (from the ATM owning bank to your bank then from your own funds on autopayment to the bank's transactional account) that all happens in a millisecond with you doing the labor end of it, then the annualized rate on that $20 loan would be in excess of 8,200%.

 

[Gale Hawkins]

Clearly we have to look at the 'real' cost of using a lot of banking options today. The fact they can be more expensive than Payday loan places when when you do the math. Encouraging broke people to right a bad check seems wrong for a bank to do or the payday loan places.

 

[CobyRupert]

And that's exactly why they charge (and should be allowed to) such high interest rates. They put their money at risk, and should be able to cover that risk with high interest. That's why banks charge higher interest rates for lower credit ratings. It has nothing to do with what's right and wrong.

Although many don't like it, our society sometimes decides that we should protect the weak, the vulnerable and the stupid. That is why you can't gouge people for a $10 bottle of water, or a $20 gallon of gasoline after the hurricane comes through, and why some states don't allow or regulate pay day loans.