Comments on: Payday loan crackdown eliminates an option for many http://milwaukeecourieronline.com/index.php/2010/02/20/payday-loan-crackdown-eliminates-an-option-for-many/ "THE NEWSPAPER YOU CAN TRUST SINCE 1964" Wed, 21 Dec 2011 18:18:53 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Car Title Loans http://milwaukeecourieronline.com/index.php/2010/02/20/payday-loan-crackdown-eliminates-an-option-for-many/comment-page-1/#comment-2121 Car Title Loans Thu, 14 Apr 2011 20:36:53 +0000 http://milwaukeecourieronline.com/?p=997#comment-2121 I can see how payday loans or auto title loans can be abused, but they are great alternatives for fast money that's needed in any case. I think it's acceptable to only allow 1 loan out at a time. Many payday loan companies don't require a credit check. Do you think that enforcing this could help the issue? -Renee I can see how payday loans or auto title loans can be abused, but they are great alternatives for fast money that’s needed in any case. I think it’s acceptable to only allow 1 loan out at a time. Many payday loan companies don’t require a credit check. Do you think that enforcing this could help the issue?
-Renee

]]> By: Jon_Schultz http://milwaukeecourieronline.com/index.php/2010/02/20/payday-loan-crackdown-eliminates-an-option-for-many/comment-page-1/#comment-95 Jon_Schultz Sun, 21 Feb 2010 17:39:54 +0000 http://milwaukeecourieronline.com/?p=997#comment-95 The Milwaukee Courier is a light shining in the darkness. People who criticize the APR of payday loans don't realize that 1) from the consumer's point of view, the APR of a two-week loan is only 1/26th as significant a factor as the APR of a one-year loan (or 1/780th as significant a factor as the APR of a 30-year home loan) because, obviously, the loan is only outstanding for that fraction of the time; and 2) from the lender's point of view the fee must equate to a relatively high APR since interest is only collected on a small amount of money for a short period of time and must be high enough to cover costs and provide some profit. Even the nonprofit payday loan offered by Goodwill Industries has a 252% APR. To say that any loan with that high an APR is "usury" and should be banned is somewhat akin to the persecution of witchcraft in the late 1600s. It's too bad that so many lawmakers and "consumer activists" can't understand or won't admit that is superstition. The Milwaukee Courier is a light shining in the darkness. People who criticize the APR of payday loans don’t realize that 1) from the consumer’s point of view, the APR of a two-week loan is only 1/26th as significant a factor as the APR of a one-year loan (or 1/780th as significant a factor as the APR of a 30-year home loan) because, obviously, the loan is only outstanding for that fraction of the time; and 2) from the lender’s point of view the fee must equate to a relatively high APR since interest is only collected on a small amount of money for a short period of time and must be high enough to cover costs and provide some profit. Even the nonprofit payday loan offered by Goodwill Industries has a 252% APR. To say that any loan with that high an APR is “usury” and should be banned is somewhat akin to the persecution of witchcraft in the late 1600s. It’s too bad that so many lawmakers and “consumer activists” can’t understand or won’t admit that is superstition.

]]> By: vanesic http://milwaukeecourieronline.com/index.php/2010/02/20/payday-loan-crackdown-eliminates-an-option-for-many/comment-page-1/#comment-90 vanesic Sat, 20 Feb 2010 21:48:44 +0000 http://milwaukeecourieronline.com/?p=997#comment-90 I can't wait for your next editorial: ... Whatever the cash crisis or problem, a loan shark has been the answer to a prayer for many. Now, a group of legislators in Madison have decided that these type of loans are traps and dangerous for people, and they are really looking to close them up, not just crackdown on them. They want to limit loans from loansharks to $600 and prevent borrowers having more than one finger broken when they can't repay a loan. They even proposed an interest rate cap, that would have eliminated the loan shark business and an option for consumers. Fortunately that amendment failed on the Wisconsin State Assembly Floor on Feb. 16. We sincerely appreciate Representatives Corleone and Gotti’s votes in defeating the Cap Legislation ... I can’t wait for your next editorial:

… Whatever the cash crisis or problem, a loan shark has been the answer to a prayer for many.

Now, a group of legislators in Madison have decided that these type of loans are traps and dangerous for people, and they are really looking to close them up, not just crackdown on them. They want to limit loans from loansharks to $600 and prevent borrowers having more than one finger broken when they can’t repay a loan. They even proposed an interest rate cap, that would have eliminated the loan shark business and an option for consumers. Fortunately that amendment failed on the Wisconsin State Assembly Floor on Feb. 16. We sincerely appreciate Representatives Corleone and Gotti’s votes in defeating the Cap Legislation …

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