James Wood
“It’s like everyone who drinks a glass of wine is not an alcoholic.”
Payday lender James Wood believes that blaming payday loan shops for borrowers who suffer financial hardship because they abuse payday loans is like blaming liquor shops for drinkers who struggle with alcoholism…
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Donald P. Morgan
“To economists, this predator-prey concept of credit seems foreign. If credit is so expensive that lenders are earning abnormal profits (given their risks and costs), why don’t new lenders enter the market to compete rates down to fair levels.”
Federal Reserve Bank of New York research officer Donald P. Morgan disagrees with consumer advocates who claim that payday lenders earn excessive profits…
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Representative Eddie Farnsworth
“I’m missing why we’re trying to protect people from themselves in [the payday loan] industry and not others.”
Arizona House Representative Eddie Farnsworth wonders why lawmakers try to protect consumers against themselves when it comes to payday lending but not other industries. One of the industries Farnsworth referred to is the credit card industry, which made over $100 billion in 2005…
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Peggy Matson
“If a customer uses (a payday loan) properly, it’s a good thing… If the customer abuses the payday loan, it will abuse the customer.”
Arkansas Board of Collection Agencies director Peggy Matson says that the payday loan industry, an industry her agency oversees, works well when used correctly…
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Kelly Griffith
“Payday loans are not access to credit, they are access to debt… When you give someone a payday loan, you’re not throwing them a life vest, you’re throwing them an anchor, and they’re going to go down faster.”
Advocacy group director Kelly Griffith believes that payday loans harm the poor and underbanked…
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Michael Tipton
“Who else is going to loan you money? A lot of people complain about these payday lenders charging too much money in fees and interest… But it’s their own decision to agree to the terms. It’s their responsibility.”
Former textile manufacturer employee Michael Tipton says that he has used payday loans on several occasions but has now found a cheaper alternative…
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Jamie Fulmer
“That’s about what banks charge for you to take your own money out of an ATM and the banks carry no risk doing that… But somehow we are supposed to loan money to a customer, absorb the risk and charge the same things that banks charge. That just doesn’t make any sense. We couldn’t even cover our operating costs that way.”
Advance America director Jamie Fulmer says that payday lenders could not survive on a proposed rate cap of 72% APR. The rate cap works out to about $3 per $100 borrowed on a two-week loan…
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Donna Cassun
“I think a lot of people have realized it is cheaper to get a loan from us than bounce a check, and a lot of people use us for emergency money.”
Donna Cassun of Advance Pay in Tooele, Utah, defends payday loans by claiming they are less expensive than bounced checks…
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Paul Belanger
“The bottom line is that if its says ‘no credit check’, if it says its ‘easy’, you want to be a little careful–it’s gonna cost you. If you want to pay that price, then I can’t tell you not to, but you need to be aware, you need to be educated about what this money is costing you.”
Navy-Marine Core Relief Society director Paul Belanger warns borrowers about the high cost of payday loans…
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Martin Crutsinger
“People once again spent everything they made and then some last year, pushing the personal savings rate to the lowest level since the Great Depression more than seven decades ago.”
According to an article by economics writer Martin Crutsinger, the average American spent every penny of disposable income they made last year and dipped into their savings from previous years…
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