391% Profit - And All it Costs is Your Soul
Submitted by Admin on Wed, 06/27/2007 - 2:21pm.
My mother isn't in the best financial spot. That long story has a lot to do with why I'm a Democrat. Sparing you the details, Mom was always into Christmas. London Broil on Christmas Day, presents in the morning, heck, Santa even use to visit (but we never saw him) on Christmas Eve with pajamas. The full shabang.
One year Mom gave me backpack for Christmas. I'm into the outdoors; I like to go backpacking, climbing, kayaking, you name it. I was ecstatic, especially since I was planning a pretty long trip and the pack was going to come in handy. A few years later I figured out exactly how bad mom had been off that Christmas past. She barely had the money for Christmas food, let alone a nice shiny pack. I was ashamed, but like most things I figured out a little too late. The worst part was when I realized how much my revered pack had cost my mother. She'd taken out a pay day loan in December to pay for it - it took her until April to get the loan paid back. Each week she'd go to the "Check and Go" and pay off the last loan, only to turn around and get a cash advance for the next week.
I love my mom. Tremendously. In fact she has no idea how much I think about her, or how hard her life's been. She couldn't afford some stupid gift, and I wish she'd never gotten it for me. But that's not how my mom, or the millions of other folks out there that rely on pay day loans are. They need the money, and they'll do practically anything to get it.
Today Rothenberg has a great piece up about Ohio's pay day advance system. The magic number in Ohio is 391% APY. That's what pay day advances can charge my mom, and yours, for the cash to get by, week by week, day by day. It's a shame.
Please read the piece. The Ohio legislature needs to lower those rates.
Oh, I agree
Submitted by Jerid on Wed, 06/27/2007 - 4:24pm.
And I'm not defending my mother's financial decisions.
However, plenty of folks rely on them as a lifestyle. And the system is gamed against the poor.
391% is a bit high in my book, even if we're encouraging business to make a profit. It's like selling lifeboats on the Titanic to the highest bidder. It just isn't right.
Its far too high
Submitted by Demgal on Wed, 06/27/2007 - 10:20pm.
Consumers need protection from these predators.
BTW, you mom sounds like a wonderful lady.
The Bible has a word for it: "Usury"
Submitted by Woodguy on Wed, 06/27/2007 - 3:56pm.
And I am appalled that evangelical Christians who CLAIM to support a literal interpretation of the Bible, just look the other way when it comes to this one. (Hmmn, probably because there's no nookie involved, do ya think?)
Often times, the victims are active duty servicemen and women.
The entire industry would not have flourished, were it not for the banking "reform" legislation that the ABA (Banking industry) wrote and the GOP rammed through.
The GOP definition of "reform" means "how we screw over as many citizens as possible while making as much profit as possible for our corporate masters."
Admin is right.
Last week I watched "The Grapes of Wrath" on teevee. Amazing how things change and yet, don't change.
Often times, the victims are active duty servicemen and women.
The entire industry would not have flourished, were it not for the banking "reform" legislation that the ABA (Banking industry) wrote and the GOP rammed through.
The GOP definition of "reform" means "how we screw over as many citizens as possible while making as much profit as possible for our corporate masters."
Admin is right.
Last week I watched "The Grapes of Wrath" on teevee. Amazing how things change and yet, don't change.
I believe there is law that
Submitted by PoliticalOutcast on Wed, 06/27/2007 - 4:11pm.
I believe there is law that has banned servicemen and families from using payday lenders.
No...
Submitted by Woodguy on Wed, 06/27/2007 - 10:49pm.
There has been legislation introduced at both the state and federal level to indirectly limit some of the really heinous tactics that these businesses have used to exploit active duty service personnel. The legislation would ban trying to imply that somehow these loans were "officially" sanctioned.
Usury Laws
Submitted by domestic goddess on Wed, 06/27/2007 - 9:07pm.
There used to be usury laws to protect desperate people. No one is saying that there shouldn't be higher interest rates for riskier loans but that's just going for the jugular. Loan sharks charge less (I think although I have never had to borrow from either source).
My first house had a mortgage of 12.75% with 3 points and I thought that was outrageous. The rates had come down from a bout 17% ( it was the early 80's and I hate Ronald Reagan). There should be a cap so people have some chance of paying back the loan and eating too.
A little background...
Submitted by Woodguy on Wed, 06/27/2007 - 11:03pm.
I guess that it's been about two and a half years ago now, the banking industry wrote a "reform" bill that contains a TON of Draconian provisions that really screw over American consumers. (I'm sorry, it's late and I'm exhausted, I know I should supply a citation)
In exchange for getting EVERYTHING that they wanted in the Bill, bankers promised a number of voluntary programs that were supposed to help lower income citizens and SUPPOSEDLY eliminate the need for these loan sharks in strip malls.
Guess what happened?
We are all paying more than ever for basic banking services, the banks' profits are higher than ever and those voluntary programs? If they were working as promised, we wouldn't be having this discussion.
This is no different than the GOP approach to "energy policy" (give billions to the fossil fuel companies) or Medicare prescription coverage (give billions to big Pharma) or foreign policy (invade Iraq, give billions to Halliburton and the military industrial complex and STILL shortchange our G.I.s on protective gear)
But I think that America is starting to catch on to them...
In exchange for getting EVERYTHING that they wanted in the Bill, bankers promised a number of voluntary programs that were supposed to help lower income citizens and SUPPOSEDLY eliminate the need for these loan sharks in strip malls.
Guess what happened?
We are all paying more than ever for basic banking services, the banks' profits are higher than ever and those voluntary programs? If they were working as promised, we wouldn't be having this discussion.
This is no different than the GOP approach to "energy policy" (give billions to the fossil fuel companies) or Medicare prescription coverage (give billions to big Pharma) or foreign policy (invade Iraq, give billions to Halliburton and the military industrial complex and STILL shortchange our G.I.s on protective gear)
But I think that America is starting to catch on to them...
Bible Comment #2
Submitted by Crooked Stream on Thu, 06/28/2007 - 2:11pm.
Jesus never said anything one way or the other about gays and lesbians, but he did knock over the money changer's tables
Righto!
Submitted by Woodguy on Thu, 06/28/2007 - 4:36pm.
Correct you are!
I used to know a great pastor who once pointed that fact out to his congregation. He went on to highlight how MANY times Jesus condemns greed --and with great vitrol.
I always remember how C.S. Lewis described REAL evil in his introduction to the Screwtape letters collection...
I used to know a great pastor who once pointed that fact out to his congregation. He went on to highlight how MANY times Jesus condemns greed --and with great vitrol.
I always remember how C.S. Lewis described REAL evil in his introduction to the Screwtape letters collection...
Woodguy
Submitted by Crooked Stream on Sat, 06/30/2007 - 2:13pm.
Don't know if you saw this today.....great letter to the editor, right up our alley.
http://www.dispatch.com/dispatch/content/editorials/stories/2007/06/30/Brion__SAT.ART_ART_06-30-07_A9_N575F4R.html
With all due respect ...