Hi guys. I just joined also. I am finally have a year and a half out from underneath these things!
Wow Catfish, I read over most your you story on your band page.... interesting stuff.
I have to thank you for reporting fairly un-biased regarding the situation. I feel that we in the Payday Loan Industry offer a viable product for certain customers in particular financial situations and that the majority of these horror stories come from at least 1 of the following2 sources...
- Rollovers and Renewals.
- A lack of responsibility on the part of the lender.
Every one of these stories I see seems to overlook the fact that someone with no money and bad credit knowingly got into a loan situation they either couldn't pay back, OR they chose not to pay it back and to just "rollover" the loan without first understanding exactly what that would do. The truth-in-lending act means that we as payday lenders MUST disclose every detail of the loan. In most cases our customers are so happy to get their money, that they could care less about understanding the loan they are taking out. No one forces them into these situations.
For example, someone who is $100 short on a phone bill and a utility bill, but get paid in less than 2 weeks could benefit from a Cash Advance Loan. They could take out $200, with a $30 interest charge to pay their bills on time and avoid re-connect fees which would total more than the $30 charge. Then, come payday PAY IT BACK!! That's where the problems occur, when the customer spends too much in-between taking the loan and payday, now they choose not to pay back the whole amount and rollover without understanding the contracts.
I don't think the answer is to eliminate ANY credit options for these people with bad credit. Regulation and responsible lending practices are the answer to keeping our industry alive, and providing a viable product without bankrupting our customers.
