examiNation DC: What do you think about the payday lenders who operate in D.C.?

I challenge these politicians to get up off of their high horse and see what things are really about. They sit there in their cushy offices spending the tax payers money on who knows what and pass judgement on services that they neither use or understand. The payday loan industry is here for the middle class working Americans who dont measure up to the higher classes standard of living and since these are the people who decided if they are going to loan us money or not we all usally end up being handed the short end of things and have to seek help elsewhere. Maybe the government should be more concerned with raising the standard of life and increasing its peoples wages to match the raising cost of living instead of trying to find ways to put money into their own pockets,(after all we dont all own oil fields now do we). Banks are allowed to charge just as many fees, the only difference is that they are not required to disclose the APR that is associated with them. Who really needs help?

Boy! It seems like the Payday employees are on their computers today. LOL

Payday lenders are their to help those that have no other or viable options. Not everyone was born with a silver spoon in our mouths. Besides, since when do we have to regulate the freedoms of responsible tax paying citizens. There are many other industries that can and do charge higher interests. It should ultimately be the borrowers decision if the product offered is right for them. The government should just stay out of the way, as I'm sure they only have issues with it because their hands aren't in the pockets of the lenders.

When I was in the military there were many times that I had to call home to "borrow" money from mom and dad. Because I was stationed overseas, I didn't have a payday loan option available to me. However, before I started working for my present payday lending/check cashing employer, I did responsibly utilize payday loans as an option to "get me by". Now that I work for Moneytree, the same company I borrowed from, I am proud to work for such a responsible and caring company. I can say with 100% certainty that if Moneytree was "out to get" or trying to "trap" anyone into using our services, military or otherwise, I would in no way be able to sleep at night and I would shout my disapproval from the rooftops. As both a Veteran and an American, I deserve to be able to have just as many financial choices as the rest of the country. Payday loans help people. If banks were required by law to disclose APR's on their overdraft fees, payday loan APR's wouldn't seem so bad afterall.

Payday loans are a very reasonable option for short term financial assistance. The checks and balances in place to protect the consumer are more than adequate. As with any source of credit the risk for improper usage (primarily people using the payday loan too frequently) does exist, but I would like to give credit to the people of this country for having the good sense and know-how to determine for themselves what credit options they would like to utilize. Certainly one credit card may have advantages over another, but it should be my endowed right as an American consumer to decide autonomously which one I would like to use. It should likewise be my decision to inform myself, take out a payday loan which I can responsibly repay and go on about my way.

Can anybody show any piece of information that involves a licensed payday lender putting a gun or any weapon for that matter against a consumers head, or has in any way manipulated an individual into getting a payday loan? No. It is disturbing enough that people will comment on this message board with very little to no information about the industry their slamming, but when 4 people have disagreed with a previous commenters statement that "No one holds a gun to a persons head and says borrow money from a payday lender" I am speechless. Another commentor mentions "corporate desk jockeys for lending companys" leaving comments, and advises that they be "more covert in their manipulation of public pools" I am manager for a lending company and the information that is being provided by those associated with the industry is factual and I challenge anyone to provide any piece of information that proves these statements false. Providing factual information to the public is not manipulation

Let me tell you something alright? Leading up to the time that we had to take out a cash loan, we didn't see anything but negative remarks from others online about the cash loan industry. We ended up almost losing our car because we waited. At the last minute, we borrowed $400 from cashloancity.com and I really believe it is the only thing "at the time" that saved us. I understand that there's a problem with some people abusing this industry and crying about it later, but what about the people that really need it and pay it back on time? We're even getting ready to have a positive mark on our credit because of it. Why are the people that never need this type of loan the same people that keep others from being able to get one?

It seems that the commentors who are against the industry or products offered by these lenders do not really have any reasons or statistics that they are willing to share to help support their point of view. The argument for payday advances is pretty solid. It seems to me that those who are against this product have already made up their mind about the industry and therefore discount any facts or statistical data simply because they already look at the source as being "sleazy" since a lot of these comments are coming from those associated with the industry. There is a simple question one should ask themselves when considering a pay day advance: Can I afford to pay this back with the proceeds of my next paycheck and still make ends meet? If not then maybe a payday loan is not the appropriate product for your situation. If a payday advance is your only option and you know you will need to keep borrowing, lower the amount each time you borrow until you can pay it in full

So if we can't go get a payday loan because the payday lenders are "regulated out of business", does the government really think this will stop people from providing or seeking this service? No, it will still happen only if you don't pay on time the drug dealer down the street will break your arm....maybe that seems unlikely to some, but historically taking things away from people usually means some "underground/unregulated" operation opens up, eventually. Or....maybe.....they will make it so only the banks can do payday loans or maybe only goverment owned business can do payday loans like military bases.....this isn't good.

I'm really amused by the comments people make regarding payday lending. It seems to me that most of the negative comments about payday lending come from people who either never did a payday loan or did a loan in a state or over the internet where the industry is not regulated. Perception carries a lot of weight in the payday lending debate and a majority of what is percieved is incorrect. I compare it to the fact that I'm a Mormon and I can't count the number of times people ask me if I can have more than 1 wife. When did that stop 75 years ago? Please people educate yourself on the subject before making a comment that effects people who borrow and employees that work there.

I cannot tell you how many times our customers have thanked us for our services. They are genuinely appreciative of the fact that we will help them out when other avenues have failed to deliver. Let's face it - our society is run on credit, whether it be in the form of credit cards, mortgages, or payday loans.

To question the propriety of the payday loan product is to question the propriety of credit in almost all its many forms. Bank overdraft protection charges and NSF fee's; credit card, utility bill, mortgage broker, and Automobile Financers late fee's have all had a huge part in creating a niche for payday lenders and their products to fill. Consumers who are looking for a less expensive alternative to these fee's are the payday lenders target demographic, not the the poor or uneducated as critics would have us believe. Extensive research is not necessary. A simple cost comparison shows us that in many cases a payday advance is in fact a cheaper alternative. So, in an an econonmy which is supported in large by those of us who find themselves borrowing from Peter to pay Paul, who stands to gain from the proposed price caps (which, make no mistake about it , equate to prohibition through regulation)? Banks, credit card companys and mortgage brokers.

We run a well regulated, service oriented, consumer friendly business. We are limted in our APR in WA State, and in our collection practices. One of the reasons the APR's or fees need to be at least where they are is because we suffer many losses. Many of the losses are from customers who are intentionally defrauding payday lenders, not from those stuck in a cycle of debt from high fees. I agree with many of the other comments as to the choice of payday lending being a wise and economical choice for many consumers. We run a respectable and honest business and offer a very good choice for many consumers. Much cheaper than credit card late fees, and bank overdraft fees.

It's fascinating that law makers who are looking out for the consumer's best interest, are the same law makers that unfairly categorize consumers as the "working poor" and "uneducated". Even more curious is that the law makers who force consumers to use the services of banks and the like, by taking away their choices to use payday loan services, stand to gain the most. Mary Cheh stated that payday lenders were "invasive Species" and caused "destruction and havoc", without mentioning it's the banking industry that is funded by the Federal Government. These are the same banks that charge outrageous fees and interest. By forcing less expensive payday lenders out of business and limiting options of the consumer jobs will surely be lost and many will struggle to find ways to avoid the aftermath of life's everyday emergencies. With this said, it seems natural to conclude the law maker is actually the "invasive species" causing "destruction and havoc".

Makes me wonder why banks are not required to disclose the APR on fees that they charge on O/D fees and the many other types of fee associated with an account. Take for example: Your Bank at their option decide to pay a $50 check and charge you o/d fee of $25 as your pay was delayed for 2 days. If they disclose the APR it computes to 9125%. If they decide not to pay the check, they will return the check within 1 day and charge you a fee of $25. Although you are denied the credit, the fee if expressed as APR computes to 18250%. Whether you like it or not you have to pay a hefty fee because your pay was delayed for 2 days. Go to a payday loan company and get your $50 for 15 days for a fee of only $7.50. The APR will be 365% and you will safe a bundle. Dont take away a valuable option available to consumers. There really is no better alternative.

Everything said is true. I also believe it would help consumers to limit one payday loan to one paycheck. Having multiple payday loans on one paycheck would not help the consumer get out of debt. I believe the consumer deserves to have multiple options, not just a Federally owned bank. I thought that our government do not allow a Monopoly which they are clearly trying to accomplish

Capping the APR on a Payday Loan does not make financial sense. The fact that we are even calculating an APR on such a short term loan is confusing to consumers and Legislators alike. If we want to help consumers to make responsible financial decisions we need to focus on giving them options instead of taking them away. Taking out a single Payday Loan cannot put someone thousands of dollars in debt. The majority of consumers who have financial hardships due to Payday Lending have abused the system. The stories we hear usually pertain to people who have borrowed from multiple Payday Lenders against one single paycheck. These consumers have full knowledge that they will not be able to meet the terms of these loans without re-borrowing. If we switch our focus to limiting the number of loans consumers could obtain per payday, we would increase consumer protection without prohibition. Payday Loans can be a valuable tool when they are used correctly. Consumers deserve options!

Payday loans should be an option for the consumers, not for legislation to decide.

People have put themselves into major financial trouble through payday lending. However, people also put themselves into major financial trouble with credit cards as well. In fact, the average household is in debt to credit card companyies by about $10,000. The interest and fees tacked onto these balances when defaulted far exceed that of a payday lender. Keep this in mind when you try to banish payday lenders as an option for the "everyday" consumer. Most people in today's society can't afford the interest rates that climb due to bank and credit card charges and use payday lending to prevent these. Bankruptcy has become rampant in this country due to over spending and use of credit cards. Can we really afford to allow the options for the people of the US to become even more limited due to regulation and prevention of our inalienable rights to make our own decision?

If you think of it in the terms of how much an everyday person spends on daily overdraft fees and return check fees at their bank, payday lending rates are nothing. But, this seems to be overlooked due to hyped up media focusing mainly on payday lenders. Yes, payday lenders should be regulated. But, if you regulate them to the point of where they won't have the resources to help people with their financial needs, then they WILL go out of business. People will then lose a valuable option. What the media doesn't advertise is that payday lenders only lend to those who are over the age of 18 and have the right as adults to enter into any contract. And yes, these contracts have and should have all information provided to make consumers aware of exactly what they are getting themselves into. We are all adults and should be allowed our Constitutional rights to make our own decisions.

The loan rates are definitely high but for many people it is the last resort. I think that they go into a loan situation with their eyes open. It's like the cigarette commercials. I can't find a single person out there who actually believes that smoking isn't harmful. That has nothing to do with the dumb commercials that tell people how bad it is. With loans the people understand the conssequences as most of them have already had to deal with the harsher consequences that banks have imposed on them and their lives for their low credit score. If payday lenders disappear because "Big Brother" decided to meddle than what are their customers left with? They didn't get seduced or tricked into anything. Those people will likely have troubles with their finances for the rest of their lives because they don't know how to spend money, not because they are locked into a never ending cycle of payday loans.

It is silly to prevent me from making a quick loan if I want one. Sometimes the loan will save me money. Lets limit the banks NSF fees instead. JDM

Payday lending rates are LOWER than bank NSF rates and other late fees. You are not helping consumers by closing payday lenders, as the payday loan may be their cheapest option to avoid multiple nsf fees and late rent fees. Free market and consumer choice are the foundation of the USA.

WHY IS IT ALWAYS ABOUT MONEY! Why cant it be about the most important thing, the consumer. I think that all of this should not eaven been brought up. Why can we buy things that can kill us like alcohol or ciggaretts with out anyone complaining or tring to pass laws to prohibit or limit the consumption of theses products. Its human nature to learn by making mistakes. expl... your dad smokes and gets cancer. You will never smoke because you know what will happen. The same for payday loans. If you make a mistake writting a check you will learn and not make that mistake again. Why try and stop an original idea that helps people with short term financial needs. I personally use payday loans and have no problem with them.

"It takes advantage of the less fortunate and uneducated and should be criminal." So by saying this you are indicating that you are not lumped in with the soi-called "less fortunate." But the statement does indicate that you are uneducated. No one forces people to use the service. It is a prodeuct that if used right can be invaluable. research before making ignorant comments.

There are a lot of businesses out there that do harm to their consumers, but nothing is done about it. Pawn shops have been mentioned a few times thru this survey. Imagine that. You take one of your valuable possesions to a place of business, leave it with them, and they give you money. In order to get that object back you need to pay more money than was given to you, and you must do it within a certain amount of time or they reserve the right to sell your possesion. Technically this is a loan product, yet there are no regulations set on these businesses, and 9 times out of 10 if you were to calculate an APR on this service it would be higher than any payday lender's APR.

I disagree with the votes that they should be shut down.

I take pride in the work that we do! We provide a service for those people who are in a jam and need short term credit. Their are no hidden fee's and it is a flat rate. It is unfortunate that we have politicians who are not educated in what our industry offers to the consumers. Taking the rights of consumers away is inappropriate. As consumers, we should not be regulated on what we choose for our credit options. Payday loans are meant for short term use and not meant as a long term solution.

It takes advantage of the less fortunate and uneducated and should be criminal. Upside, the cops can follow the recipients to the dealer.

I think that consumers should be able to make their own decisions on who to borrow money from, whether it be a bank or a payday loan company. The fees are drastically cheaper than bouncing a check with your bank. Or paying late fees if the bill is due before you get paid. Consumers should be able to weigh their options and do what best works for them. Payday loans are meant to be a short term solution and not meant to be used long term.

Payday loans provide a service that no one else offers. Pawn shops are WAY worse. Keep payday loans!

I have no shame to say that I work for a great company-Moneytree. We are here to help people, and as mentioned before, it is the consumers choice. Depending on their financial situation, they should have the choice to do what they need to do when it comes to a financial strain. I myself have had to borrow money from a payday loan company at some point, and trust me it saved me from a lot of heart ache!!! If used responsibly you can get out of the debt, without getting caught in a bad cycle. Especially now, if you're able to set up a payment plan, you don't acrue interest-like you do with those terrible credit cards, and their HIGH rates! Why don't they focus on credit cards and rediculous bank fees!!! Banks are supposed to help people and all they do is wait for the right moment to put that check they were holding, through, and charge you $34 for less than a five dollars.

Its about time that lawmaker should keep a very close eye on these payday loans offices, and the intrest rates should be lower on these short term loans

I am outraged to see that a small few, rich, white men, can speak for what my rights should be. I am not able to get a bank loan, mostly because I am young, and Payday loan companies have been great! I know how to use them: only in an emergency, and not for a long-term solution. I think if a politician spent as much time on getting young men and women out of Iraq as they spend on taking rights away from people…well that is a different topic!

This is a voluntary transaction. As long as their is full disclosure on payback; their should be no government intervention.

I think the one thing that no one has mentioned is the institutional racism and classism that makes having to provide this service in the first place. No one has mentioned that it is very difficult for many to obtain a line of credit from a bank because there are blatant red lining that happens, whether that be in the housing market or when a person comes into a bank to apply for credit. As people of this amazing democracy we have to recognize that there are the “haves” and “have not’s” this is not fair. The only way to change this is to address the real issue; middle and lower class people are taking out loans. Many do not know that the majority of people who take out loans have a college education, have families and cars. Payday loan customers are not the downtrodden of this country and they definitely do not need Politicians who have their best interest in Lobbyist speaking for them.

I think people should be able to make their own decision , based on their financial situation. I work for a great company and we are here to help people to hurt them-financially. I myself have had to get a loan at some point, in order to prevent my bank from charging me overdraft fees, $35 for a purchase as small as $2. If used responsibly, and short term. Payday loans are a wonderful tool that can save many from everyday financial situations that may arise!!!

Give me a break! Do we really need "Big Brother" telling us when and how we should spend our money. Really spend your time focusing on something that really matters! I'M AN ADULT.

I feel that the payday lending industry is attacked by many people with a lack of knowledge of the product that they offer, or at least without a complete understanding. They see the high interest rates but what they don't realize is that the rate is a reflection of a short term loan expressed at a yearly rate, which makes it seem worse than it actually is. Most payday lenders have flat fees for their loans, which as mentioned in earlier comments, are far less than what the banks are charging for insufficient funds fees. The payday loan product is meant for emergency use and, just like in any other industry, there are those who abuse the product and thus give it a bad name.

I thinking having the payday lending places are benificial to poeple. Me personally I would be still stuck without a car if it wasnt for Moneytree. I use them in times of emergency. If you really want to help me out, fix the gas prices and fix the credit card companies. They charge extremely high rates and it is easier to get a credit card than it is to get a loan. Use common sense, people dont use the payday lending places because they have money, they go there because they need money.

I personally think that payday loans are a great thing, if done wisely. Cash advances, payday loans, no matter what you call them, they are a short term loan to help you get by until your next payday. They are useful when you have an emergency or you just don’t have quite enough to make it to your next payday. If you are a person who lives check to check and you have an emergency i.e. car breaks down, death in family and you need plane ticket, family in the hospital. Things like this are great reason to get payday loans. Payday loans are a great temporary solution to your debt problem. It gives you e a few extra weeks to catch up on your debt! Many places have better rates then a credit card and if you really can't pay it back they let you set up payment plans. With only 1 interest fee, not a constant rising interest rate like credit cards. They are really a blessing for the lower income people who use them responsibly.

I think they're a pretty sleazy line of business in general and the rates they charge border on usurious. I can't imagine what level of financial ignorance or misfortune would lead someone to borrow from them. That said, I assume their popularity means they're meeting a legitimate need and their high rates reflect the risk of the loans they make. Ultimately, I'd be interested to hear the testimonies of those who have used them in order to make an informed decision. Why not report some personal experiences of their customers - both pro and con?

It's not the payday loan companies that are to blame, it is people living beyond their means...and the economy of today that is causing the problem. Let's fix the real problem, not put a bandaid on it.

The banking industry is more dishonesy than the pay day industry. banks and credit card company all take the consumer. with a pay day advance you know up front what it costs.

Craig should get his facts (and his genres) straight. Payday loans are not secured. Mortgages are. Payday loans don't accrue interest. Mortgages do. When a payday loan defaults the lender gets to recover ONLY the principal and a one-time fee. When a mortgage defaults, a family's out on the street. Craig's mortgage situation is for 500K, payday loans are for $500 or less. I fail to see the analogy.

They are of the same genre as those "exotic mortgage loan officers" who ask no money down, offer 1000 a month mortgage (for a VERY short time only) for a 500,000 dollar home, and then the buyer has to foreclose when in 2 years the loan is 2000 or more a month.

I wonder how many of the voters are from the DC area, and how many are employees of a payday lending company?

Payday lenders should not be shut down. When someone is in a bind financially they are able to turn to someone to receive the funds and pay them off the next pay date. No one forces them to apply for these loans. So why stop the services.

Pay day lenders provide a legal, value-added service to people in an underserved market. People who face the unexpected life-circumstance (medical bills, car repairs, etc.) have nowhere else to go.

If you look and compare the interest rates with credit cards there is not much diffrence. The people that come into the payday loan facilities are not forced to get this money. These companies actually lose money from the people that believe they dont have to pay their bills.