Payday loan-check advance business questions.

[Midniteoyl]

What about the process of "Redlining." That is unlawful now. But the banks were doing it, so apparently they didn't want to make loans across the "red line" they drew on maps.

If we believe your statement above, then that act that wiped out Redlining had a 0% success rate.

?? If they were 'forced' to give 'access' to loans to certain people, those people still had to meet certain loan criteria. That criteria was determined by the banks. Thus, the banks gave money to whom they wanted.

I just dont see how you cannot see this? Banks are never forced to give money. Even that Home Loan Modification didnt work, as I stated before, as banks did not have to do it! Even Frannie and Freddie (which were the only ones actually covered by that law - your loan had to be with them) didnt do much. No other bank actually allowed a loan modification under this program.

Again, no banks were 'forced.'

 

[Gale Hawkins]

Excellent post Gale!

Thanks.

Having thought of payday loans in a negative light and still do but my recent experience with a person in the payday loan trap was an eye opener. I like others take stupid risks with equipment without thinking or being to lazy to use reverse, etc. The rolling of the tractor and it crushing himself without anyone knowing about it for a while (something that could happen to many of us) had such profound effect on this guy's wife and young teenage daughter and they were totally unprepared to face the financial decisions in front of them. In this case the in-laws living on either side of their house decided to take over in a negative way.

Clearly from this mess that had been running for five years post the tractor death could have be less negative with proper financial planning and training. I think having a trusted financial planner involved with our family business prior to our death is a MUST after seeing how family can abuse family when $$$ is involved. Enough emotional stress/abuse can and often does lead to bad financial decisions. A husband, wife and children need to have a plan in place that is at least a near term protection of assets from people that prey on those ill prepared to manage an estate after an unexpected dead like an tractor, etc accident. Clearly there are some claiming to be helping that may act in a manner harmful to those we may leave behind.

Again if you know of someone you care about using payday loans, over draft protection (unsecured loan type), etc try to get them with some planner that can talk straight. Sometimes those who have lost the financial leader of the household just need to be encouraged. Often just getting them with the right CPA is a good start. Once a plan can be put in place for them to get back on their feet they may be OK. While some may have to take bankruptcy many others just need to learn how to manage to get expenses less than income which may be fixed.

This may be selling the farm and getting into a home with less monthly living costs associated with it. As many of us who have been or currently in financial jams learn there usually are acceptable options if we can chill and focus. This is where the right financial adviser can be CHEAP in the long run.

I now know good people in a bad situation may and do from time to time use Payday loans and the like just because they do not see another option because of that ad or sign stating 'we will get you the money you need today NOW'. Years ago in the Navy there were those on Friday wanted a $5 loan and would repay $10 on payday. They are easy targets for Payday loans by habit often.

It is not for me but I do not see a legal payday loan business as evil or the like but I do see the use of such loans should be viewed as a cry for help from family and friends and yes I know many do not agree with me on that point. While death may not be at hand for many of us BUT learning how to live with increase costs and decreasing income is a reality that most of us will or are facing in these financial times. Who knows he or she will not leave family behind that may feel the need to go for a Payday loan some day?

Financial train wrecks do happen more often than we may realize.

 

[EE_Bota]

I just dont see how you cannot see this?

I don't see it because I followed it all very closely at the time since I was investing heavily throughout that period. I can't forget all I saw just to make it match up with all you didn't see.

It's Fannie and Freddie, and are you quite sure you know the impact of F & F on home lending?


Look up Acorn and some of the other groups that filed CRA complaints habitually so that banks had to lower rates or pay Acorn off, setting up essentially a protection racket.

 

[dmccarty]

...
Look up Acorn and some of the other groups that filed CRA complaints habitually so that banks had to lower rates or pay Acorn off, setting up essentially a protection racket.

The Feds were just going after a bank in CA because it was not making loans in a certain area. The Feds are saying the bank is being racist and needs to make loans into this area even though the bank does not want to take on the risk. The bank will now have to decide which will cost it less, fighting a Federal lawsuit or making the risky loans. Years ago, the WSJ reported the Fed's pushing Country Wide to make risky loans.

Later,
Dan

 

[Midniteoyl]

I don't see it because I followed it all very closely at the time since I was investing heavily throughout that period. I can't forget all I saw just to make it match up with all you didn't see.

It's Fannie and Freddie, and are you quite sure you know the impact of F & F on home lending?


Look up Acorn and some of the other groups that filed CRA complaints habitually so that banks had to lower rates or pay Acorn off, setting up essentially a protection racket.

You're right..its Fannie.. sorry for the spell check on my tab.

In any case, I'll leave it be. You can claim the Banks are the 'good guys' all you want. I wont.

 

[EE_Bota]

You're right..its Fannie.. sorry for the spell check on my tab.

In any case, I'll leave it be. You can claim the Banks are the 'good guys' all you want. I wont.

I never said banks are good guys. I don't even know if statements like that are sensible, let alone true.