WKSU News: Payday Lending Stores Receive Criticism

Thursday, February 22, 2007 Payday Lending Stores Receive Criticism by WKSU's STATEHOUSE CORRESPONDENT BILL COHEN	Reporter Bill Cohen

The number of payday lending stores in Ohio has exploded in the past decade. A new study confirms the trend. Critics say there's good reason for the stores' success - they're making a mint off of desperate consumers by charging sky-high interest rates. But the payday lending industry is answering the criticism.

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Listener Comments:

I agree with Darren.

First of all, WKSU reporter seems to present at least both sides of the opinions. This is why i believe public radio is so vital in the presence of so many internet websites which tends to only present one sided view; Or newspapers who usually promotes one-sided view.

One thing i suspect is that lawmakers or politicians will do things just to become popular. So it tends to be driven by a group of people with a louder voice. People who are hard working and need to make ends meet by borrowing actually does not have time to spend on the debate on what is proper interest rate to charge like here. Indeed $15.00 fee on a $100.00 loan is saving a lot of folks other fees; Otherwise, why would one do it? We are not bunch of losers who are like drug addicts who need drugs. Please do not insult those people who have to borrow. It is worth to pay some fees and if i can save on other fees, i will borrow: if i am paying to much on fees, i will find a way to solve my financial needs. 391% interest sounds like a lot but it is annualized number, so it is 15% on the principle with a term of 2 weeks or so. There are some people who may get trapped in the repeat borrowing, but if one is behind in so many bills and credit card payments, it's getting trapped in debt, too. With so many people with credit card debt, do they want to abolish credit cards, too?

I warn politicians not to take a legislation that will take consumers choice away without providing A SOLUTION FIRST. PLEASE DO NOT UNDERESTIMATE PEOPLE'S INTELLIGENCE and insult hard working people.

Sean

Posted by: Sean (Mentor) on April 15, 2008 5:29PM

wow a interview that didnt bash payday lending for us who need a little extra with gas being so high and electric bills going up up and away.Taking away our short term credit options would be the last thing these guys want.Especially when banks continue to raise there credit standards.These polititions want to ban this because they have never been broke.Giving banks total controll of lending hmmm thats just plain bs THIS IS AMERICA I CAN MAKE UP MY OWN MIND!

Posted by: darren (hamilton) on March 27, 2008 5:23PM

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