Tuesday, February 26, 2013
Instituting an interest rate cap would eliminate a valuable service to those who need quick credit.
Tuesday, February 26
I work for Advance America, a payday lender here in Rhode Island. There is a lot of misinformation about payday loans, but here’s the reality: Every day I help fellow hardworking Rhode Islanders – teachers, first responders, small business owners – meet their financial obligations and support their families. They visit my company for simple, affordable and reliable credit. A payday loan can make personal and economic sense, especially when compared with unregulated Internet loans, overdraft fees and penalties for missing payments. For every $100 borrowed, our customers pay a flat $10 fee that does not compound interest – whether a customer repays their loan in three days or 30, they pay the same one-time fee. My coworkers and I help …
Friday, February 1, 2013
Lawrence Meyers responds to a letter we posted yesterday entitled "Payday Loans are Bad." In it, he says he "provides facts, not mythology."
Friday, February 1
Steven V. Martino’s letter of 1/29 is typical of payday lending opponents. It is long on accusations and short on facts. When presented with reasoned analysis in the comments section, Martino refuses to address the arguments, instead using the ad hominem fallacy by declaring anyone who disagrees with him to be “clueless” and asking, “how much is the industry paying you to say these things?” I’ve seen this style of “argumentation” for eight years, ever since I began writing about the industry in the financial press. Opponents see a high APR, conclude the loan is predatory, and stop there. They never dig any deeper, and when presented with logical and factual arguments, they respond with the ad hom argument because the facts are not on …
Thursday, January 31, 2013
Steven V. Martino writes that payday loans target low-income people, worsening their financial situation.
Thursday, January 31
Rather than devise some catchy hook for the opening of my letter, I've decided to just say it how it is: Payday lending is bad. Now, let me explain. Payday lenders set up shop in some of our state's poorest communities. We see them in Pawtucket, Woonsocket, Providence, Cranston and even Warren. They attract folks who have no money, no savings and, often times, little-to-no credit. Financially strapped customers borrow an amount they must pay back in two to four weeks, and then they borrow and re-borrow that same amount for years. That is how this ridiculous industry makes millions off the backs of decent, hard working Rhode Islanders. Payday lenders also claim they provide a valuable credit option to folks who, otherwise, would have no …
Tuesday, April 3, 2012
An official from Advance America responds to a recent letter calling on the Rhode Island General Assembly to impose limits on the interest charged for so-called payday loans.
Tuesday, April 3, 2012
Dear Editor: A recent letter to the editor (“Support Curbs on Payday Lending Interest Rates,” Mar. 23, 2012) presents a misguided argument for regulations that would do more harm to consumers than good. When facing a financial shortfall, Rhode Islanders make borrowing decisions based on their personal and economic interests. For many, a payday advance, with its one-time fee of $10 per $100 borrowed, serves as an affordable tool for overcoming such challenges, especially when compared with more expensive options such as overdraft fees, unregulated Internet loans or missing a bill payment. While any form of credit can be abused or misused, our experience shows that most customers use payday advances responsibly: Over 95 percent of Advance …
Friday, March 23, 2012
A consortium of groups and individuals is calling on the Rhode Island General Assembly to support limits on the interest rate allowed on so-called payday loans.
To the editor: The [Rhode Island] House Committee on Corporations is considering legislation to reduce the legal rate of interest on payday loans from the unconscionable APR of 260% to 36%. The bill (H-7257) has been co-sponsored by 50 of 75 representatives. The senate bill (S-2307) is co-sponsored by 26 of 38 senators. Because of the likelihood of passage, lobbyists for payday lenders are trying to make sure that the bills never get a vote in either chamber. Payday loans are marketed as short-term solutions to a cash shortage. In reality, borrowers get trapped in a cycle of borrowing at unconscionable interest rates. The family that couldn’t afford to pay expenses before obtaining a payday loan now has to shoulder the burden of triple-…