If the government prevents these people from giving their money away like this, they will find another way,,

Pawn Shops charge more, that would be a good choice for them.

Bank Overdraft charges are LOTS more, that would finish them off even faster.

GO Darwin GO

JLFS

If the government prevents these people from giving their money away like this, they will find another way,,

Pawn Shops charge more, that would be a good choice for them.

Bank Overdraft charges are LOTS more, that would finish them off even faster.

GO Darwin GO

JLFS

If the government prevents these people from giving their money away like this, they will find another way,,

Pawn Shops charge more, that would be a good choice for them.

Bank Overdraft charges are LOTS more, that would finish them off even faster.

GO Darwin GO

JLFS

The payday lending industry is already heavily regulated in Missouri. Taxing the business an additional $1000 does nothing to help consumers. It will go directly to paying the costs associated with the oversight of the new regulations.

In the end, as with all taxes, business will likely pass along the costs to their customers.

How exactly does this help the people who need cash between paychecks?

The need has always been there. It was filled in different ways, i.e. family, loan sharks, etc. At least pay-day lending is aboveboard. Leave the industry alone. It will survive or die by its own merits. That’s how free enterprise works.

I am not very familiar with your industry, and I have two questions.

First, Since payday loan shops in my town, Denver, are almost as ubiquitous as gas stations, why don’t payday lenders list their APR interest rates on a sign outside the store, just like gasoline stations? I know %391 doesn’t sound great, but neither does $3.21 a gallon!

Secondly, have your business owners take out payday loans of their own? Do they recommend such services to their family and friends?

Thanks again,

Jason

By Guest Shot: Ryleigh Simms
February 22, 2008 6:00 AM
I am a payday loan officer in Manchester. I have been very active with the current bill (HB 267) that has gone through both the House and the Senate.

This bill will eliminate payday loans in the state of New Hampshire by imposing a 36 percent APR cap. Thirty-six percent would mean for every $100 loan, we would make $1.36, this is not enough to pay normal maintenance for a company. I am appalled at the behavior of both the senators and House members in regard to these bills. It is my belief that instead of working in the interest of their constituents, they are working in the interest of the banks.

A recent poll done by Zogby International found that more than 70 percent of New Hampshire residents polled did not want payday loans to be eliminated. Those same residents also stated they would support a candidate that would keep payday loans available. Only .5 percent felt that eliminating payday loans should be a top priority.

In the past four years, the welfare department of New Hampshire has seen a drop in the number of people requesting assistance. Oddly enough these numbers coincide with when payday loans first started to emerge in the state. Instead of New Hampshire residents asking for government assistance, they are trying to make ends meet on their own.

In Georgia, after payday loans were eliminated there were more than 1 million bounced checks, complaints against bill collectors increased by 64 percent. These statistics were found by the Federal Reserve Bank of New York. The average bounced check fee is $30, that equates to more than $30 million in a year within one state. $30 million that payday loans were saving their customers from being subjected to.

At the New Hampshire Senate hearing which was held on Feb. 14, Sen. Bargdon of Milford, admitted to having a limited knowledge of how payday loans work. Instead of voting with a lack of knowledge about the subject, he actually visited a payday loan office. He spoke to customers and loan officers. After getting an idea of what it is we do, he voted against HB 267 to eliminate payday loans, deeming payday loans to be a valuable service. Perhaps the vote would have gone differently had more senators took the initiative to visit or even call a payday loan office.

We have been called everything from Mafioso to predators for providing the service we do. We do not loan to the poor and desperate. We loan to the working middle class. We loan to people who might live paycheck to paycheck, but who might need more help when something unexpected comes up. A broken car, an unexpected bill, these are all reasons people come to payday loan offices. I also have customers who are on fixed incomes and when something unexpected comes up they are in a serious dilemma. I provide a service to these people. I do not lend them more than what they can pay back in a week’s time. My company does a minimum of two-week-long loans. The interest rate may seem high when it’s written in a year-long APR. In all reality we charge $20 for $100. This is not unreasonable.

Where are the people who need these short-term services going to go after they have been eliminated? Their options are few and far between. Some will be able to go to welfare, and it seems welfare is more than happy to accommodate them, as they have been pressuring the passage of HB 267.

A few others will manage because not all are in need of the funds. Quite a few of my customers are wealthy businessmen and women, who use the extra funds as circumstances arise. But there is still a large number of people who will have no option. Most of my customers make too much to be qualified for welfare, but still struggle when unforeseen circumstances arise. Credit unions are another option, but the minimum loan is $1,500. Is there a real reason why someone should feel pressured into a $1,500 loan when all they need is $300, and are more than willing to pay a minor $60 finance charge.

HB 267 has left a number of people without an option and currently it appears that the only ones benefiting from its passage are the banks. The banks who will be making $30-$40 per overdraft fee. As stated earlier, these fees equated more than $30 million in one state, and that was within one year. It now seems as though the senators have lost the interest of the people and replaced it with an interest for the banking institutions. My concern is no longer for myself and the 200 other employees out of a job in the state of New Hampshire. My concern is where are our customers supposed to go?

Ryleigh Simms is a loan officer with Martin and Sheehan PDAL Inc., Colortyme Payday Loans in Manchester.