“Another misconception spread by consumer groups is the portrayal of payday [loan] customers as “poor and uneducated.” They intentionally confuse payday-loan customers with active checking accounts with the “unbanked” check-cashing customers.”
Payday lender Allan Jones claims that consumer advocates intentionally mischaracterize his customer base…
(More information… )
“It’s a way to access the banking system by people who can’t access it in other ways. We do it, too. You and I access money we need by using our credit cards.”
Financial advisor Amy Gibb believes that payday loan companies and pawn shops are simply banks for the unbanked…
(More information… )
“I do always feel bad about paying all the fees, but it is convenient for me, and it’s better than asking family members for a loan.”
Financial analyst Anitra Foote, who makes about $45,000 a year, has taken out 10 online payday loans…
(More information… )
“This is great sound-bite legislation… House Bill 29 would not allow this industry to survive in the state of Montana. It’s a prohibition bill.”
Payday lender trade group president Bernie Harrington believes that Bill 29, which seeks to cap payday loan interest rates at 36% APR, would kill his industry…
(More information… )
“When a bank charges $38 for a bounced $10 check, what is the ‘interest rate’ on that?”
Payday lender Bill Taylor attacks bounced check protection…
(More information… )
“Whether or not this is the best way for people to borrow money, it’s a legitimate option in the marketplace.”
Lawyer Bruce Hallsor believes payday loans are a choice that should be made available to people who have a poor credit rating and can’t get loans from banks…
(More information… )
“While the principal customer base of the payday lending industry is lower-income and lower-middle-income consumers, as a general matter these consumers must have at least a steady job, a bank account and a social security number in order to qualify for a payday loan.”
In an essay entitled Regulation and Self-Policing will Influence Consumers’ Access to Payday Loans, Washington D.C. lawyer Charles M. Horn challenges the notion that payday loan consumers are the poorest, low-income people…
(More information… )
“Just as you understand that taxi services are valuable and convenient when used for short-term travel needs but are inefficient to use for long-term travel needs, payday advance services are economical and convenient when used for short-term cash needs. But they are inappropriate to use for long-term or continuing cash needs.”
The Virginia-based payday lender trade association compares their product to a taxi…
(More information… )
“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…
(More information… )
“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…
(More information… )