These comments come from the Canton Rep.
“The only difference I see between Pay Day lenders and loan sharking is the latter is illegal and the former should be. If you can’t make a decent profit off of a 28% rate of interest you’re obviously in the wrong business.” Retired Banker
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“Retired Banker: I’m surprised with your ‘banking education’ you dont realize what a 28% APR is on a 2 week loan. There is no decent profit. 28% APR on a two week loan is $1.07. It costs more to print the contract. Payday Lenders have overhead like any other business. These are high risk loans, loans that banks won’t give. These loans are needed by consumers with less than fair credit for emergencies. I work for a lender, and am proud of the business. I know the behind the scenes workings of the company and feel the media/blogs have made a poor representation of what a payday loan was. The payday loans charged 15% of the loan as a fee. Thats IT, but when you take that figure and multiply it to appear as a ANNUAL rate, it looks ridiculous, just like 28% APR divided down to a 2 week loan is ridiculous to believe any business could survive.” taramapes
I’m a little surpised at Retired Banker. Maybe he’s just a Monopoly Banker and not a real one.
