What if you need a $100 in groceries to feed your family and you don't have the money? The payday loan is cheaper. Sometimes people fall on hard times and need short-term credit. That's my point.
If you want to open a zero-interest loan business under Biblical or other religious standards, a bid you good luck.
Payday lenders are not doing anything illegal. And at least payday lenders will tell you the fees for the product. Banks wait until you take money out of the ATM before it hammers you with an overdraft charge.
Furthermore, the notion that payday lenders do not want customers to pay back their loans is baseless. A business that builds itself around a demographic unable to make its loan obligation would fail.
There are millions of people who have used payday loans successfully and responsibly, yet the media and these so-called advocacy groups turn a blind eye.
At least payday lenders will tell you what they charge beforehand. Banks wait until you overspend your account to hit you with overdraft charges, which are more expensive than payday loans.
The FDIC reports that, assuming a $27 overdraft fee a customer repaying a $20 POS/debit overdraft in two weeks would incur an APR of 3,520 percent; a customer repaying a $60 ATM overdraft in two weeks would incur an APR of 1,173 percent; and a customer repaying a $66 check overdraft in two weeks would incur an APR of 1,067 percent.
Next time you gripe about tripe-digit payday loans, take a look at the four-digit bank products.
‘Payday’ loan rates still high
Mr. Answers:
What if you need a $100 in groceries to feed your family and you don't have the money? The payday loan is cheaper. Sometimes people fall on hard times and need short-term credit. That's my point.
If you want to open a zero-interest loan business under Biblical or other religious standards, a bid you good luck.
September 30, 2009 at 11:05 a.m. permalink suggest removal
Payday lenders still overcharge, despite Ohio law, study shows
Payday lenders are not doing anything illegal. And at least payday lenders will tell you the fees for the product. Banks wait until you take money out of the ATM before it hammers you with an overdraft charge.
Furthermore, the notion that payday lenders do not want customers to pay back their loans is baseless. A business that builds itself around a demographic unable to make its loan obligation would fail.
There are millions of people who have used payday loans successfully and responsibly, yet the media and these so-called advocacy groups turn a blind eye.
September 30, 2009 at 11 a.m. permalink suggest removal
‘Payday’ loan rates still high
At least payday lenders will tell you what they charge beforehand. Banks wait until you overspend your account to hit you with overdraft charges, which are more expensive than payday loans.
The FDIC reports that, assuming a $27 overdraft fee a customer repaying a $20 POS/debit overdraft in two weeks would incur an APR of 3,520 percent; a customer repaying a $60 ATM overdraft in two weeks would incur an APR of 1,173 percent; and a customer repaying a $66 check overdraft in two weeks would incur an APR of 1,067 percent.
Next time you gripe about tripe-digit payday loans, take a look at the four-digit bank products.
September 29, 2009 at 2:14 p.m. permalink suggest removal