We have all seen them. Blogs, newspapers, editorials, organizations, articles and everything else attacking payday loans. They all spew the same verbal diarrhea and blatant lies. Let me explain.
Example 1: From the Las Vegas Review Journal- "Johnson used to pay $79 in fees to a payday lender for a $200, two-week loan."
This is patently false. Check City will charge about $30 for a two week loan for $200. No one charging rates more than double that could possibly still be in business. And if they are, who can possibly be stupid enough to buy a product from someone who charges more than double what everyone else does for the same thing?
Example 2: Same place- "Community One offers 30-day loans for $300, $500 and $700 with a fee of $15 per $100 loaned and an 18 percent annual interest rate, or about 1.5 percent for the 30-day loan period."
Well good for Community One! They are offering cheaper payday loans and getting a pat on the back! Now that's only 200% APR they are charging! How benevolent of them! I'm sure the CRL and others are giving them a big pat on the back for doing EXACTLY the same thing payday lenders are doing for a little less in fees.
Example 3: From the LA Times- "Scarcella rolled over the loans a couple of times, paying a $95 fee per loan that was taken out of her checking account."
Where on earth are these people getting these loans? Scarcella, the fictitious anecdotal sob story, had borrowed five loans of $300 each (which is illegal in CA by the way.) So let's see, $95 per loan for a $300 loan, no time frame given so we'll assume two weeks....that's more than double the $45 fee Check City would have charged!
Does every stupid person in the country find a way to borrow money from the worst possible lenders? According to reports online, yes! I would invite these disenfranchised fake people to come borrow money from Check City. See if the rates are out of control. See if our collection practices are out of control. Not going to happen.
This propaganda is dispecable. Over 90% of repeat borrowers pay their loans back in full and on time without any problem. How can you justify the 1 in 10 who has a problem as being representative of the rest! Report the rule, not the exception!
This kind of liberal, agenda riddled reporting from our media is yet another example of why they cannot be trusted to report facts. Every news outlet has an agenda. They will try and force it on you and make you agree with them. And with payday loans in their sights, it won't be long until everyone hates payday lenders.