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.
- OPINION
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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 …
41.82428
-71.499169
Advance America
1500 Atwood Ave, Johnston, RI
/articles/letter-payday-loans-a-valued-credit-option
509525
/locations/8860770
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-…
41.82924
-71.415529
2 Capitol Hl, Providence, RI
RI State House
/articles/letter-support-curbs-on-payday-lending
/locations/6647101
stephen v. martino
1:01 pm on Wednesday, April 4, 2012
Mr. Fulmer: Your argument is both redundant and quite bogus. Your assumption that legislation would do more "harm than good" is wrong. Why? Well, as a former manager for Advance America I can tell you with certainty that the vast majority of your customers continue to turn-over their loans for years on end. This is how your company makes big money. Tell me, how is this helping Rhode Islanders? … more ›