Payday loans, regardless of what cock and bull story the Federal Government is spewing, are a good thing. Payday loans, like other kinds of independent lending, are good for the economy. They help people that no other financial institution will help. They provide a service no one else does.
This isn’t just mindless blogging – this is a factual statement.
The government claims they are “helping the citizens” by trying to outlaw private lending. But here are four simple facts that prove otherwise:States that payday loans have more hardships for their residents
- The interest rates are more reasonable than you think.
- Customer satisfaction speaks volumes.
- Helping the economy with jobs.
More Bankruptcy, More Debt Collectors
States where payday loans have been banned or prohibited have citizens that are more likely to file for Chapter 7 bankruptcy! Citizens of these states also bounce checks more often, and have to put up with more debt collector harassment.
Charging Only What They Have To
Payday lenders are accused of charging excessive interest, but this is actually not the case.
Goodwill tried out a program of offering short-term “payday”-style loans through their storefronts. The goal was to offer low-cost, low-interest small dollar loans to help their client base, and to so as a non-profit company. The results? Goodwill found they had to charge over 250% APR just to break even.
What this proves is that private lenders aren’t inflating prices just to line their pockets, they are in fact charges the bare minimum of what they need to maintain a profitable business.
Payday Loans Customer Satisfaction is Through the Roof!
10 to 12 million people use payday loans every year. Customer satisfaction rates are overwhelmingly positive. In other words – payday customers like having these loans available to them, and usually have a positive experience.
So if the people who actually use these loans approve of them, who is complaining? Lobbyists, for one, who don’t like all those billions of dollars not being controlled by the Big Banks.
The Government is taking away the rights of all Americans under the guise of “protecting” its citizens. But since the citizens using this product are happy with it, these new regulations make no sense.
The new federal regulations have the specific goal of destroying the private loan industry – not just payday loans but cash advances, title loans, and pawn shops as well. Anyone who doesn’t pay big money to Washington lobbyists is in the crosshairs of this dangerous government watchdog group the CFPB.
The intended goal of the CFPB (Consumer Financial Protection Bureau) has been directly stated as being a “fatal blow” to the industry that will force thousands of lending businesses to close. Think about that for a moment – thousands of businesses closing, which means tens of thousands of people freshly unemployed. All thanks to government over-regulation