Ohio payday loan customers cry foul
Payday loan customers in Ohio are trying to come to grips with their State government's decision to effectively ban payday lending in that State. Here are some comments in the Ohio press today:
"'This is a godsend for people trying to get their bills paid, basically make ends meet,' Dan Schardt, 48, said while exiting Cashland, 223 W. Perkins Ave.
The Sandusky electric technician, who uses a payday loan about once a month and said he always pays them back on time, believes people like him are being punished for the actions of those who may not use the loans responsibly."
"'This is the first instance where the government just shuts down a business arbitrarily,' Schardt said. 'They're not considering the people who will be out of work, the property owners who lease to them and the public -- it's a big disappointment.'"
"'It's not fair,' said Lyle Viock, 49, who uses occasional payday loans to pay bills while waiting on the $800 he receives each month in spousal support after the death of his wife. What are people supposed to do?'"
"'This is supposed to be a free country,' Viock said. 'It doesn't feel free when they're telling you what to do with your money'"
Labels: American_Legislation, Media_Coverage
posted by Advance View @ 7:05 AM
2 Comments
2 Comments:
Yes, its very unfortunate. People like Cheri DiNovo and ACORN representatives like to think that these businesses can somehow stay in business and be profitible charging only 28% annually --- its impossible. They'd be making only $1 per every $100 loaned out. That means if their rent is $2,000 per month, they'd have to do 2000 good loans and not have a single loan go bad just to pay the rent. And if only one person didn't pay back the $100 (and trust me, many payday loan customers just take the money and then disappear without paying a cent) they'd have to do 100 good loans just to be back at zero.
I'd love to sit down with someone like Cheri DiNovo for 5 minutes with a calculator and show her the math. A 28% annual cap will instantly wipe out all of the payday lenders in that area
Let's forget for a minute about cost effectiveness or profit or even morality of it that Ohio's all in a uproar about. The simple facts are the need for it. 12 years ago I was a single mom raising 4 children. The school levy in our township failed. I had a daughter who was on the varsity softball team. Now it was going to cost me $200+ if I wanted her to play. Being on a limited income and no one to ask for help. I walked into National Cash Advance being embarresed ashamed and angry at having to ask for help. Thanks to their respect and sensitivity I left with the money I needed and my self respect in tact. With their guidance I was able to pay off the loan without a big loss to me paycheck. The experience was so positive that I sought employment with them. I took a paycut to start at the bottom but was filled with anticipation of being able to help people in need like myself. Our client base consisted of seniors that could not afford their medication in the middle of the month. They were not the bottom rung of society, one was my dentist elderly mother who would sooner starve than admit to her children that she was in need. It was a matter of pride with her as it was with me. My career lasted 10 years and I became a District Manager. Even though I have recently been let go. I defend and praise the work that I and my team did to help those in need. If you have never been in our shoes you cannot intelligently give an opinion. But I challendge you to ask the single mom next door or the seniors in your own family.
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