MBA Grad

FDIC Survey Proves There Is a Role for Payday Lenders

Based on what I have observed and heard over the past few months Payday loans are really a deal for consumers that need cash when compared to alternatives like bouncing a check or having utilities cut off.

My Sister-in-Law was disparaging PDL's the other night at dinner and I asked if she had ever bounced a check (I knew she had). When I asked her what it cost she told me that altogether it cost her a little over $210.00 because when she bounced one she had actually bounced 3 and each institution had charged her a $35.00 "Bad Check" fee and then the bank had charged her $35.00 for each check. I asked how much she was short in her account and she stated about $5.00. I told her for $20.00 she could have borrowed $100, deposited it in her account and saved $190.00 in overdraft fees. Her mouth dropped open in surprise. She kind of got a little irritated and asked why I hadn't told her about this before.

Some people jump to conclusions without knowing the facts based on what they hear from biased sources. When will people learn to get the facts before they speak.

Payday Lenders Battle Ohio's Slippery Regulators

Next let's regulate how much people make when selling their house, or maybe how much profit lumber yards make or how about how much profit insurance companies make. Hold them all to 28%. So instead of letting a lumber yard make 200% profit on a board they make 28%. The guy who bought his house 20 years ago for $100,000 can only sell it for $128,000 when it's worth $400,000, and an insurance company that takes in $100,000,000 in premiums has to give everything back except $28,000,000 from which it pays out all claims. Lets also stop people who make more than minimum wage from making so much money. While we're at it lets just stop all businesses from making any money.