Comments on: Payday Loans: Bigger Is Not Better II http://californiabudgetbites.org/2009/06/19/payday-loans-bigger-is-not-better-ii/ Serving Fresh Policy News and Views - One Post at a Time Tue, 04 Aug 2009 22:04:13 +0000 hourly 1 http://wordpress.com/ By: Emily Winkle http://californiabudgetbites.org/2009/06/19/payday-loans-bigger-is-not-better-ii/#comment-411 Mon, 22 Jun 2009 17:05:18 +0000 http://californiabudgetbites.org/?p=1002#comment-411 Payday lending opponents’ “cycle of debt” claim is not valid. CFSA’s Best Practices indicate that any customer who cannot pay back the loan when it’s due has the option of entering an extended payment plan. This option allows them to repay the loan over a period of additional weeks at no additional cost. Regulator reports showing that more than 90 percent of payday advances are repaid when due debunk the allegation that payday lenders don’t consider borrowers’ ability to repay. Moreover, all reputable payday lenders have underwriting criteria and requirements of a steady income and checking account.

While other financial options like borrowing from family should be taken into consideration, payday loans are a viable alternative when one compares the fees of consumers’ other short-term credit options: $100 payday advance = $15 fee; overdraft protection = $29; late fee on a credit card bill = $37; $100 off-shore internet payday loan = $25 fee; bounced check and NSF/Merchant fee = $55. (Source: http://www.cfsa.net/cost_comparison.html) For information on other payday loan myths, visit https://www.checkngo.com/resources/faq/payday-loans/general/payday-loan-myths.aspx

]]> By: Patricia W. Neal http://californiabudgetbites.org/2009/06/19/payday-loans-bigger-is-not-better-ii/#comment-406 Sat, 20 Jun 2009 18:17:21 +0000 http://californiabudgetbites.org/?p=1002#comment-406 correct ” word ” interest

]]> By: Patricia W. Neal http://californiabudgetbites.org/2009/06/19/payday-loans-bigger-is-not-better-ii/#comment-405 Sat, 20 Jun 2009 18:15:37 +0000 http://californiabudgetbites.org/?p=1002#comment-405 Louis the loan shark charges less interes than Payday Lenders. Licensed Pawn brokers charge ” by law” less interest than Payday Lenders. Shame again on the legislature, putting special interests above good public policy.

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