Online Payday Loans

Truth in Payday Lending

Darrell Wells

Category: Quotes, Proponent — Thursday, January 4, 2007

“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…

In an article by Richard Roesler, Wells said that in an average month he:

  • makes 415 loans
  • grosses $20,000 in fees
  • nets $2000 after expenses (employees, taxes, benefits and overhead)

Wells told lawmakers that the rate cap legislation would be a de facto ban on payday loans:

“I’m here to tell you that is not regulation. That is prohibition.”

Darrell Wells is the owner of Paycheck Financial Centers in Olympia and Aberdeen, Washington.

Source: Payday Lenders Feel the Squeeze by Richard Roesler (The Spokesman-Review)

Related Quote: Dennis Brassford

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