Online Payday Loans

“I think it’s wonderful for people that need the money… A lot of people live day to day.”

Payday loan consumer Cynthia Smith offered this praise as she left a payday loan shop in Richmond, Virginia…
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“Fifteen is the magic number… Once it gets below $15, the attractiveness of the product goes away exponentially, given the fact that loan losses can be quite significant.”

Equity analyst Daniel O’Sullivan believes that a payday loan shop must charge a minimum of $15 per $100 borrowed to remain profitable…
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“The average person in [the payday loan] business is not making a ton of money… If I could offer this product at a lower price, I’d already be doing it. It would be a huge competitive advantage.”

Payday lender Darrell Wells claims that he cannot lower his prices any further and that a proposed rate cap of 36 percent APR would effectively kill his small payday loan business…
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“A payday loan at that rate would be unprofitable because it costs us $13 per $100 loaned, but we could only charge $1.38.”

Payday loan company and trade group president Darrin Anderson says that the 36% rate cap on loans to military members will make it impossible for payday lenders to issue loans to our armed forces…
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“This rehash of flawed statistics is designed for publicity purposes, not a serious discussion of consumer lending needs.”

Payday loan industry trade group president Darrin Anderson attacks a recent payday loan study by the Center for Responsible Lending…
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“Appropriate state regulations provide strong protections for consumers, while ensuring continued access to choices for short-term credit needs… That same principle should apply in cyberspace.”

Payday loan industry trade group president Darrin Anderson believes that online lenders should be licensed in each state where they do business and has introduced a new guideline for member companies…
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“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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“They’re steadily employed, drug free, they live paycheck to paycheck. They’re not going to disappear and they are the type of people who want to pay back debt.”

Dave Feraldo believes that that military personnel are easy and lucrative targets for payday lenders…
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“Payday loan offices provide a service abandoned by the financial community. It simply costs too much for them to put a small loan on the books.”

David Davis defended payday loans in an article…
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“It’s like seeing a guy drowning and throwing him a brick instead of a life-preserver.”

Deborah Lane offered a metaphor for the way payday loan shops do business…
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