Payday Loan Lender’s Porn

by jhwygirl

Payday loan lenders are fighting back, with television ads throughout the state saying “Don’t sign I-164”.

The ad features one of the two brothers who own several payday loan lending places here and throughout the state – E-Z Money. I’d reckon most people would recognize their smiling faces from their television ads.

I-164 has these guys and their sordid industry running scared. The television commercial I saw propagandized that they only fees they charge are $15 for a two week $100 loan, $25 for a two week $200 loan and $35 for a two week $300 loan.

That’s $390 in interest per year on a $100 loan – if the person who got the loan is able to at least meet the loan fee.

And if it isn’t the initiative that has these guys running scared, it’s a problembear, who is doing battle with one of their paid lobbyists in pb’s most recent post here at 4&20.

problembear has been out gathering signatures for I-164, and he has also been back to his blogging over at Problembear’s Weblog.

Goddess Bless him.

Imagine the dire straits someone would be in to head to a payday loan lender for a $100 loan. A mother or father with a sick child, perhaps? Working minimum wage (not unlikely, given all those high-paying job Missoula has, right?). These people are already down and behind, and that’s how these places get their hooks into desperate people. Making that kind of money, it’s hard to keep yourself up with that kind of paycheck to begin with – you’re already counting pennies just to make rent, keep food on the table and gas in the car to get to work.

The E-Z Money owner and the ad intentionally blurs the line as if payday loan lenders, title loan lenders and retail installment lenders are all one in the same. All are just as evil. Right now, under Montana law, payday lenders may charge up to 650% on a 14-day loan. Title lenders can charge 300% on a 30-day loan. Plus they can take the car when you default for 60 days.

Here’s the language from I-164:

Under Montana law, deferred deposit (payday) lenders may charge fees equaling one-fourth of the loan, which is the same as an annual interest rate of 300 percent for a 31-day loan or 650 percent for a 14-day loan. Title lenders may charge interest equaling one-fourth of the loan, which is the same as an annual interest rate of 300 percent for a 30-day loan. I-164 reduces the interest, fees, and charges that payday, title, and retail installment lenders may charge to an annual interest rate of 36 percent. It prohibits businesses from structuring other transactions to avoid the rate limit.

~~~~~~
This evil loan industry is putting out the same tired crap that they’ve used at the legislature for at least the last two sessions – “over 600 jobs at risk” and “over 100 businesses affected statewide” – and while that may have worked for the Republican legislators that wouldn’t allow bills even out on to the floor for a vote, it isn’t working for initiative signature gatherers, who I’ve been told (by problembear and others) aren’t have any trouble at all gathering the signatures that they need.

Again – Goddess bless ’em.

The lobbyist firm they’ve created to do battle with I-164 is Coalition for Consumer’s Choice. Here’s their contact information, just in case you want to write:

Coalition for Consumer’s Choice
Bernie Harrington, Treasurer
PO Box 81137
Billings, MT 59108

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  1. Montana Cowgirl

    Keep up the great work problembear and please keep us posted on this excellent ballot initiative.

  2. Pilot

    Real democracy, instead of that “Tea Party” bullshit.

  3. knowwhatyourtalkingabout

    People! Get a clue!! You want to take what the “problembear” says and think it is all facts? Please.. Individuals get in trouble all on their own! Nobody is making them get loans, it was their choice. It is also their choice to use them responsibly or not too. If you can’t manage your cash flow that is your fault. It’s not the lenders fault. The state passed a law saying a person can’t take out more than one loan at a time but what are the consequences if they do?? Nothing.. What is the point in passing a law if nothing is done if you break it? Educate yourselves!! And maybe people should quit living beyond their means. I know that there are some bad lenders out there but I also know there are lenders out there who follow all the state regulations and are there to help those who are in need. There is a lot of talk about the high interest rates but figure out what the ARP is for what a bank will charge you on a bounced check. You’ll find that often it’s more that a payday loan! Think about it, you need $100 and get a payday loan for 1-15 days its $15.00 bounce the check instead and pay the NSF fee it’s around $25 to $35. Hmm which is better? I’ll take the $15. Every business is started to turn a profit. Like everything in life it’s all about how “YOU” choose to use it. And it’s not just the poor minimum wage workers getting payday loans, it is people who work for the IRS, Presidents of big companies, city workers, there are borrowers from all walks of life. It’s not just the “poor” lower class citizens who can’t budget. I find it insulting that because someone holds a minimum wage job they are considered dumb and not able to handle their finances. There is a LOT of high paid degree holders out there that can’t handle their finances! Please just learn all the facts before your opinion is formed. Thanks.

    • The Polish Wolf

      @ genericsayingwithnospaces:

      You’re right, people should live within their means. Taking out a loan with 400% interest is not doing so. Thus, we are limiting their ability to take out such a loan. Businesses have no more inherent ‘right’ to make a 400% loan than they have the ‘right’ to run a slot machine. Just because there is a market for a service doesn’t mean that service is beneficial to society. If this shuts out payday loans, so be it. But I imagine there will continue to exist smaller, less profitable, but much fairer operations.

    • stukeman

      I am definately not for I-164. I agree with knowwhatyourtalkingabout concerning living beyond ones means. People are irresponsible if they are taking out more loans than they can afford. Let’s keep in mind that the payday lenders are NOT forcing people to take their loans!!! Also, the lenders do provide a way to repay without being gouged. You can pay a $300 loan plus its interest in 4 payments. Here is what they do…let’s say that you owe $300 plus the $35 interest. You can initially pay as much of the loan as possible once you sign the repayment agreement. Then the remainder is paid off in 4 equal installments. So, let’s say you paid $75 initially. The lender would then divide the remaining $260 into 4 payments of $65. Now honestly, that is way better than a bank will do you!!!! Pretty affordable if you ask me!!! And for the record, it is just not low income people taking these loans out. I make about $50,000+ a year and find myself needing a quick loan from time to time. And yes, I do use the payday lenders. I know several of my friends, who make a sizable income, that use this service as well, some even have a higher income than myself. My biggest question is why no one comes to the aid of people being charged outlandish fees from the bank for overdraft charges!!! Banks are ruthless and very unforgiving if you bounce a check. So come on people…get a life and let people decide their own fiscal responsibilities. I hope that those “600 jobs and over 100 businesses” do not have to close shop. They have families as well. And they definately are not predatory lenders. So tell everyone to VOTE AGAINST I-164!!!!

  4. we all know what you are talking about don’t we?

  5. here come the “A” list slime devils to the rescue folks. get ready for an onslaught of mercenary payday loan defenders.
    they sound reasonable don’t they? but there is no such thing as partially paying a payday loan. the only way you get the 300.00 loan is to make out a check for anywhere from 345.00 to 360.00 and you better make sure you can cover that check when they cash it in two weeks or else. if it bounces, you will be liable to them for their bounce fee and you will be paying bank fees.

    that is why so many of our working poor simply take out another payday loan from another lender to cover the original check they wrote. see how it works? easy money right? it is easy money. for them.

    it’s a road to hell for the low wage earner caught in this trap though. don’t listen to the slime devils. they will lie their butts off to try to stop this citizens initiative. i have been itching to tee off on these spawns of satan for a long time now. the last wave was the “c” list. enjoy the fun. and feel free to join in. these guys are easy to trip up. all you have to do is tell the truth and they shrink back into the ooze they live in.

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