Tuesday, February 04, 2014

Your Turn

The US Postal Service says they want to start offering payday loans. I'm not sure that is a business they need to get into. Have you ever got a payday loan? How long did it take you to pay it off?

35 comments:

Bruce Jenner said...

No. These places should be ashamed of themselves, taking advantage of people. That's why I make my kids work and save money.

Lord Disick said...

Loans? Those are for peasants.

Derek Harvey said...

a small one years ago and had trouble paying it back so I had to get the money from my dad to pay it and he yelled at me (in the loan store!) and the whole process was pointless

sandybrook said...

No that's what bank accounts are for.

Paris Hilton said...

I loaned my A+ Status to Kimmy. Now that big ass bitch won't give it back.

MontanaMarriott said...

What is that? I have heard of it in a commercial before but never knew what it actually is.

rajahcat said...

that's exactly what we need now is for the US Postal service to start loaning money........haha

I love it when the government finds more and more ways to intrude and co-opt....

cc423 said...

The reason this is being considered is because banks refuse to do business with the poor. They do not see any profit in helping them. So if they get paid by check, the must cash their check at one of these businesses and pay the outrageous fees. The typical poor family spends 10% of their annual family budget on financial fees. That is as much as they spend on food in a year. Meanwhile, these predatory lenders are protected by people like Darrel Issa (R-CA) who receives a LOT of money from them to do so.

GPS74 said...

A cash-strapped agency wants to get into the payday loan business? Yeah, that sounds like a genius idea; what could possibly go wrong?

AJ Productions said...

Exactly. And let us not even get into the factt hat banks keep raising these fees on one side, while upping rewards on the other side to give wealthy people free stuff for being wealthy. So we all get to pay more so rich folk get perks.

sandybrook said...

@cc423 do you know how much they are gonna charge customers for this service?

Seven of Eleven said...

Preach it, @cc423!

The interest rates alone on payday loans can reach up 40% in some areas. Some states have laws in place that cap the interest rates, but the payday loan places go around that by instituting per-day fees on top of the percentage rates. But hey, who cares? Let 'em (stale) cake while we give fat cats huge tax dividends.

Joshua said...

Maybe poke around and find the story rather than commenting on the false premise 'Enty' presented?

http://thinkprogress.org/economy/2014/02/03/3239261/elizabeth-warren-post-office-financial-services/

auntliddy said...

These things are the devils doing. You never get caught up.

AJ Productions said...

I think the point of the payday loan service is to keep folks away from the uncouth practices currently employed. Of course Republicans are up in arms, after they broke the Constitutionally mandated org with ridiculous pension payments, and the areas that cost most to deliver to are publican strongholds, they will now find anyone else to revisionally blame it on. Standard mo.

GPS74 said...

I've never done one, thank god, but I don't understand - what collateral does the recipient provide in advance?

Count Jerkula said...

Post Office isn't actually cash strapped. By act of Congress they had to make huge payments the past few years, to fund their pensiona and health insurance. I think last year was the last one, so with all the lay offs, shut downs, and price increases, they should be flush with cash.

Fact chick this, but that is how I remember reading it.

Murphy said...

I have never gotten one, that commercial with the Native American lady with braids scares the bejeezus out of me

GPS74 said...

For the FY that ended September 30, 2012, they had a $15 billion dollar loss, triple what they recorded the prior year. I'd be astonished if they miraculously recovered from that in seventeen months, especially given that they haven't even instituted long-overdue service cuts.

Jason Blue Eyes said...

And fuck up your credit rating? Um..pass. I'm debt free, make a decent living, have good credit and and intend to keep it that way.

texas rose said...

What kind of vig is the post office looking for?

sugarbread maker said...

450-850% and it's legal..cough..govt. just wants a cut

MISCH said...

The Post Office is limited by Congress on ways to make money…

Bally said...

I've never had one, but the rates here in my area start at around 78% annual interest.

If I get one of their loans, can I pay them back with those Forever stamps?

Alicia said...

I read this as " fat chick this " the first pass

Jacq said...

Tell it, CC! I have always assumed that these places are predatory lenders. If you watch the very small print on the bottom of the screen for that Blue Sky (some kind of Native American lending scheme) it says the interest can be as high as 113%. I'm not sure how that's even legal, and at the very least it's preying on the needy.

Snapdragon said...

The only reason the USPS is so strapped is because of the ridiculous requirement that the fund pensions 70+ years into the future. It's a ploy to get the USPS privatized, which means someone's pockets would get lined and prices would most certainly go up.

USPS as predatory payday lender? No way. Warren's actual idea, I could get behind: Elizabeth Warren Proposes Replacing Payday Lenders With The Post Office

AndrewBW said...

No, the Post Office is not proposing that it start making payday loans. Rather, Elizabeth Warren is proposing that they provide some basic services such as check cashing, small international money transfers, small loans, reloadable prepaid cards, and bill paying.

TalksTooMuch said...

I love that someone used the word "vig". Lawrence Block would be so proud

Bessie Smith said...

If this is so, what I wonder about is what will transpire if someone defaults on the loan. The collection methods or repercussions. That would be interesting. I think the Post Office should stay on the horse and deliver the mail.

Renoblondee said...

Pay Day loans are the debbil.

discoflux said...

Gives new meaning to "The check is in the mail."

*whompwhomp*

Count Jerkula said...

Lol, Alicia. When I read "fat chick this" all I could think of is Roseanne grabbing her crotch after singing the National Anthem.

BTownGirl said...

I live in MA and payday loans are illegal here. Errrr, so is the USPS getting into usury now?! Just deliver my goddamn magazines on time for once.

Erik said...

No, but I've taken direct deposit advances before. Never again.