Payday LoansPayday Loans and Cash Advancestag:blogger.com,1999:blog-134726902006-01-14T17:32:15ZBlogger
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trueBill2006-01-14T09:32:13-08:002006-01-14T17:32:13Z2006-01-14T17:32:13Ztag:blogger.com,1999:blog-13472690.post-113725993351927015Beacon Journal | 01/12/2006 | Payday loans not only option
Payday loans not only optionSome credit unions offer lower-cost alternativesBy Gloria IrwinBeacon Journal business writerWhen credit union CEO Becky Howell realized that many of her members were using payday loans, she decided to do something to help them better manage their money. Payday lenders in the Akron area typically charge $15 per every $100 borrowed, and the loan is due from the next paycheck or within 14 days. That amounts to an annual rate of 391.07 percent, according to information posted at a local lender.
falseBill2006-01-14T09:28:00-08:002006-01-14T17:28:50Z2006-01-14T17:28:50Ztag:blogger.com,1999:blog-13472690.post-113725973072423460Payday Loans a Solid Financial Tool
Payday Loans a Solid Financial Tool
Personal Cash Advance announced this week that a payday loan is solid financial tool for consumers that need additional cash for any occasion. Though the media and competing financing industries have long equated payday loans with a form of loan sharking, recent data suggests that the consumers disagree; only 6% of those surveyed stated that they chose a payday loan because “there’s no other alternative.” A vast majority of those surveyed indicated that they favored payday loans because they are convenient, offer fast approvals, and require less paperwork than other financing options.
The survey also found that payday loans are not only emerging as the preferred method for consumers to finance short-term needs and projects, but also used with medium frequency. On average, most consumers that utilize the service about eight times per year. Additionally, 92% of those surveyed also indicated that payday loan companies offer a useful service, further supporting the concept of payday loans as a useful tool to consumers nationwide.
falseBill2006-01-14T09:24:12-08:002006-01-14T17:24:12Z2006-01-14T17:24:12Ztag:blogger.com,1999:blog-13472690.post-113725945225740936Letters to the editor: Payday loans are debt traps
Payday loans are debt traps January 14, 2006 Vicki Woodward's Jan. 9 letter ("Payday lenders fill a needed void") criticizes Novelda Sommers' article on predatory lending for "failing to mention a few key facts." But Woodward's letter failed to mention the most important fact of all. It is the dirty little secret the payday lenders don't want legislators and the public to dwell on. What is this fact? Payday loans are really not loans at all but cleverly designed debt traps.
First, the payday lender lures its victims into the trap: "Get up to $500 cash now," "No credit check!" "First loan free!" The "borrower" doesn't realize until it is too late that he can't pay back the loan in two weeks, and he is now trapped into getting another loan and another and another because he can't let the payday lender bounce his check.
falseBill2006-01-14T09:19:00-08:002006-01-14T17:23:15Z2006-01-14T17:23:15Ztag:blogger.com,1999:blog-13472690.post-113725939508138172Payday loans expensive but essential
Largely unregulated, lenders face new limits on loans, interest rates Harold Nedd Pacific Business News From behind the counter of Payday Loans, Ed Britton says he has bailed countless people out of emergencies.
He's the guy they come to for instant cash.
All his customers need to do is show their last pay stub, then write a post-dated check for the amount they want to borrow plus 15 percent. They get the cash to cover the rent or get the car fixed.
When payday arrives, Britton cashes the check.
"It's obviously a service that's needed," said Britton, regional manager of Payday Loans of Hawaii Inc., which has five outlets across the state. "But some people believe that we go out on the street and bring people into our office and mug them for their money."
Britton is among two dozen payday lenders facing stricter regulations in Hawaii, where the payday-advance industry generates roughly $5 million in fees from about $40 million in loans made mostly to borrowers whose bad credit makes it difficult to obtain credit cards or conventional loans.