Do you think government regulation is needed for Payday loan companies?

2016-03-02T10:46:09-05:00

The Payday loans industry is allowed to charge up to 75% interest on loans up to $500 and the loan can rollover up to 6 times allowing interest to on the loan to exceed 75%. A study found that the average Payday loans is for $391.64 with a final interest rate of 451.91%.

Response by PO1 William "Chip" Nagel made Mar 2 at 2016 10:52 AM

2016-03-02T10:52:44-05:00

Not only Yeah but Hell Yeah. I remember their shenanigans around PSNS Bremerton and every Military Base I ever visited.

Response by SSG Audwin Scott made Mar 2 at 2016 10:53 AM

2016-03-02T10:53:03-05:00

They kill people on interest, but yet they are the only solution for some when it comes needing a pay advance.

Response by PO1 William "Chip" Nagel made Mar 2 at 2016 10:54 AM

2016-03-02T10:54:15-05:00

http://www.pitch.com/kansascity/payday-loan-industry-scott-tucker/Content?oid=4044440

How KC's wealthiest enclaves became a shadowy nexus of predatory lending

The new money started announcing itself at St. Ann sometime around 2008. "It was most obvious at the school auctions," says one member of the...

Response by Sgt Aaron Kennedy, MS made Mar 2 at 2016 11:01 AM

2016-03-02T11:01:10-05:00

It's about the level of regulation, as opposed to a binary choice of should or should not.

Payday loans exist because there is both a need and a market for them.

That said, they can be considered Predatory, which goes into the realm of Profiteering (something I am opposed to). The buyer should beware, however there needs to be a balance.

Response by SFC Justin Scott made Mar 2 at 2016 11:05 AM

2016-03-02T11:05:57-05:00

I guess I'm going to be the one that goes against the grain here. Part of the problem currently being faced in the United States, and much of the world, is we have established a culture of blame rather than one of accountability. We have stopped holding people responsible for their own choices and actions. The only real regulation that should be on these companies is that they must ensure their contracts are very clear as to what the person is agreeing to. A big problem in this nation is that everyone wants to turn to government to be the "parent" and act like everyday citizens are too dumb to make decisions for themselves. Last I checked, we are supposed to be a free society, but how free are we if we allow the government to continually make every decision for us and regulate companies out of business?

Response by SGM Mikel Dawson made Mar 2 at 2016 11:25 AM

2016-03-02T11:25:53-05:00

If anyone's dumb enough to do it, I guess they need to find out the ending. I learned as a kid from my Dad, if you ain't got the money, don't buy.

Response by Capt Tom Brown made Mar 2 at 2016 11:51 AM

2016-03-02T11:51:30-05:00

Here in TX there are so many laws and rules governing short term loans, payday loans, auto loans title loans, etc, the average person can't begin to understand them. There are also a plethora of FTC rules which address borrowing rights. It appears there may be enough rules on the books to protect the average SM from getting completely ripped off. Sadder still is the SM who somehow gets roped into depending on these loans to live. Here is a good place for volunteer on-base financial counseling services made up of SM and spouses of all ranks, to help SM manage their affairs.

Response by LTC John Shaw made Mar 2 at 2016 2:01 PM

2016-03-02T14:01:10-05:00

These companies are state regulated. Some oversight is needed around transparent loan terms, amount, interest paid. People need to make informed choices.

Response by SFC Thomas Howes made Mar 2 at 2016 2:04 PM

2016-03-02T14:04:49-05:00

Hell yes I remember I had soldiers go to them and I would counsel them to stay away but a lot of them learned the hard way

Response by MAJ Ken Landgren made Mar 2 at 2016 2:56 PM

2016-03-02T14:56:48-05:00

Yes as it keeps customers in poverty.

Response by MSgt Private RallyPoint Member made Mar 2 at 2016 3:18 PM

2016-03-02T15:18:28-05:00

I do think this is one type of business that needs to be forced into extinction. They prey on the less fortunate.