Comments in California

Lately, I’m more interested in what people are saying and not the media.

Here are some comments from an opinion in the Merced Sun-Star. Legislators are looking at increasing the check value of a payday loan to $500 from $300. Personally, I think it’s a good idea.

zaphoid wrote on 07/07/2009 01:03:35 PM:
If you don’t have access to legitimate credit, you have no business borrowing money. If you are desperate… you planned poorly. Mr. Example should have been putting some of the 150$ away every month for car repairs. If he can’t afford to fix it, and screwed up his credit to the point that he has to get a loan with a 400% annual interest rate… well… so sorry. As far as I have seen these places are pretty darn up-front about how much you are paying. You write them a check…. and they give you cash. How much more obvious can the cost of the money be made?
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Joan wrote on 07/07/2009 11:50:46 AM:
A sharp auto repairman would work with you on the family car costs and reap the profits as well as the work. If I pay 1/3 of the bill up front, 1/3 on pay day and the final 1/3 the next pay day or something similar. It’s pretty close to bartering, but not quite. It’s good to have tangible collateral to hold. Has anyone compared the pawn shops to the payday loans? Nobody says anything about pawn shops.
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righttochoose wrote on 07/07/2009 10:30:59 AM:
In your words “So when the family car breaks down and needs repair, he takes out a two-week payday loan for $300, paying a fee of $45.” He has choices; overdraft his bank account that will be $35 plus everyday the account is overdrawn a daily fee that will easily exceed $45, bounce a check to pay for the repair, $35 to the bank then $25 to the auto shop = $60, or not pay for the repair and lose his job.36% eliminates payday lending, but it does not eliminate the need for the service. Customers should have the right to choose what financial products they use and should get full disclosures of the fees. Payday lenders already do that but you have to read the fine print on a bank statement to get the same understanding of account fees.
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realsolutions wrote on 07/07/2009 08:21:20 AM:
First of all, these are private transactions between consenting adults, and if the pay-day loan outfits were not filling a need, they would not exist. What right does the state have sticking its nose in this situation? If the state intervenes, some of these outfits might go out of business, and then where will their customers go? There could be unintended consequences, such as more robberies and thefts.But secondly, does anyone else find it strange that a legislature that has spent California into bankruptcy is trying to “fix” a business arrangement between willing borrowers and willing lenders? I think it’s a hoot. The legislature needs to get its own house in order before it tries to “fix” other businesses.
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Joan wrote on 07/07/2009 07:30:44 AM:
Loan sharks have existed since the beginning of civilization. It will cost you to try to get rid of them.

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