Jennifer Stein
“When you go for these loans, you’re pretty desperate, and you don’t really care as long as you get the money you need… They basically give it to you just to fail.”
Internet payday loan consumer Jennifer Stein believes online lenders are a trap…
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Darryl Dahlheimer
“With online loans, they’re greasing the skids so people slide into boiling oil that much faster.”
LSS Financial Counseling project manager Darryl Dahlheimer believes that online payday loan companies put consumers on the debt treadmill much faster than brick and mortar lenders…
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Deputy Attorney General Jill Miles
“Now it’s going to be very difficult for a payday lender to come into West Virginia.”
West Virginia Deputy Attorney General Jill Miles said today after the only payday lender in West Virginia left the state…
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Patricia Randle
“We counsel soldiers that it starts a downward spiral when we start using payday loans and renew them, or take out new loans to pay off previous loans. It makes it difficult or next to impossible to get out of debt.”
Army Community Service program manager Patricia Randle warns soldiers about the debt treadmill, one of the pitfalls of payday loans…
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Professor Chris Robinson
“The payday lending industry is not very risky in the way that we usually think of risk in financial institutions. The lending portfolio is very diversified in the form of many very small loans, and hence the loss rate is reasonably stable.”
Finance professor Chris Robinson puts a dent in payday lenders’ claims that high fees are justified by high risks…
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Bruce Cran
“The only thing lacking right now… is enforcement of the law.”
According to an article entitled High Interest: Protecting the Illegitimate Profits of Payday Lenders, Canadian consumer advocate Bruce Cran believes that existing federal legislation* is sufficient but needs to be enforced.
*Under the Canadian Criminal Code, lenders cannot charge more than 60% APR.
He also has some interesting advice for Canadian borrowers who owe large amounts of interest to payday loan shops…
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Attorney General Lisa Madigan
“During the holiday shopping season, consumers are flooded with a deluge of advertisements for payday loans appearing in the newspapers and on the radio… I recently saw a payday loan ad offering free turkeys and another shop is offering free t-shirts that say ‘It’s better than borrowing from your mother.’ The reality is that these loans will take the shirt right off of your back with costly fees and outrageous interest rates.”
Illinois Attorney General Lisa Madigan warns consumers to be wary of payday loan advertisements…
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Neil Walsh
“People end up simply servicing their debt while never being able to retire the principal… This is not financial assistance – this is financial disaster.”
AARP lobbyist Neil Walsh speaks out against payday lenders in an article entitled Legislative Panel Hears Payday Loan Debate published today in the Daily Press…
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Bruce Cran
“It seems to us that this bent for legislation is in response to the payday loan industry wanting to improve its position substantially from where it is now and legalize these interest charges that people are hit with… It’s very sad that people need payday loans badly enough to pay these rates.”
Consumers’ Association of Canada (CAC) president Bruce Cran comments on the Canadian Payday Loan Association (CPLA) president’s push for national regulations…
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Governor Edward G. Rendell
“Under this outrageous product, a person who borrows $500 and makes minimum monthly payments ends up paying back more than $4,000 over about two years… Advance America may not be making payday loans in Pennsylvania anymore, but they are still trying to take advantage of hard-working, hard-pressed families.”
Pennsylvania Governor Edward G. Rendell announced a lawsuit against national payday lender Advance America over their “Choice Line of Credit” product…
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