UPDATE: J'ville woman shares 'Payday lender' woes

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POSTED: Friday, January 6, 2012 - 11:14pm

UPDATED: Wednesday, January 25, 2012 - 5:28pm

One payday lender website says this: "Payday loans are also commonly referred to as cash advance, payday advances, payday advance loans and fast cash loans"

It looks tempting to many.  Last night after our story aired, East Texans responded.

The Better Business Bureau tells KETK, they have an average 400% interest rate.

And many accuse the places of preying on the needy.

One woman from Jacksonville -- who wishes to remain anonymous -- completely agrees.

"They're money hungry!  They're stealing from the poor," she said.

She says her daughter got a loan from a lender in Jacksonville to pay a bill.  She just thought it would be easier than going to a bank.

"It's a $150 loan but they make you pay almost $400 back," she said.

We tried to contact a man who represents payday lenders on Friday about our update to this story.

We got no response.

But, we have this statement from him from Thursdays story.

"This option is typically less expensive than bouncing a check, or floating a check at the end of the month or getting a cash advance on a credit card, so most of the customers - of the options available to them, this is the least expensive of the realistic credit options that are available to them," said Robert Norcross with the Consumer Alliance of Texas.

Thrifty Loans is where our anonymous interviewee says her daughter got her loan.  And she says, they've even threatened her and her family.

"They call you up, they curse you out, they call you names and everything else.  I guess that's their way of threatening people," she said.

And she says it's not just her daughter they call.

"They call my sister up, they call our family up and chew us out, they threaten to come to our houses," she said.

We want to emphasize...KETK did contact Thrifty Loans for comment -- but they didn't return our phonecall.

 

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They're there for the people who are strapped for cash to get them thru the week/month or if a problem arises and they need fast cash. I got caught up in this once. I found out you DON'T have to repay them. This will likely mess your credit up. I quit paying, closed my bank account and opened another. I got a letter from the county district attorney & my attorney explained to him he didn't have a leg to stand on. Now if you have a car title loan, you may want to get your car back!

Hey look maw, Im on TV! All I had to do was go to one of dem there loan people.

lmao!

I'm paying nearly $400,000 for a $200,000 loan. It's called a 30year mortgage; it's low risk and long term, and it's still expensive. So it stands to reason that a high-risk, short-term loan would cost more, especially when a borrower is not paying it back as agreed.

Also, how is this option cheaper than bouncing a check? An NSF fee is what, $30? If you borrow $500 on a payday loan, its over $600 to pay back in 2 weeks. $1000 payback over $1200. How is that cheaper? If a credit card cash advance is 25% APR and you pay it off at the end of the month or even in a year, that's still much cheaper. Your reporter should have called Norcross out on that. It still boils down to an individual's responsibility. The customer signs the papers and agrees to the terms

These places do prey on the ignorant. Most of these customers could not calculate an interest rate or understand one. The most irresponsible thing you can do when you are in a bind is get a payday loan. The 1st step to get out of a hole is to stop digging, not trade your shovel for a bulldozer. Many states have outlawed these loans, but one of our state legislators owns several PDL stores, so that will never happen in TX. With new regs in place, you'll see alot close down b/c of shady practices.

They say for theses people to go to a bank but we all know that 99% of them would be refused a loan from a bank.Why don`t some of these complainers loan out some money to these people that would solve all their problems.

These businesses make you do nothing. You agreed to whatever rates they charge. Don't want to pay the toll, don't use the bridge. Have little sympathy for someone who fills out the paperwork, takes the money and has mommy (anonymously) whine your case. And quite poorly I may add.

If the "victims" would pay back the loan on time, they would avoid all these problems.

Until everyday folks discover that cellphone, Internet, dish TV and lottery tickets are not the top priority when it comes to paying bills, will they discover that there are establishments in this world that are willing to loan at outrageous rates. I agree that these places are criminal in there fees, but until financial laws are changed we have to be smart in our choices. Mr. Claiborne, I enjoy your reporting, but let us not make the ignorant of this world the innocent victims.

Are you kidding me? If you sign for a loan with these people, it is in the contract that you will pay huge interest rates. The lady in this report stated that "They called her Momma, sister and others to harass us". First, why were they calling you? Did you fail to make payments on that loan too? Mr. Claiborne, I will give you the " C'mon Man" award for this report. These people fell behind on bills, borrow in desperation and fail on that loan too. Happens everyday. Find better material.

Oh people, please please DO NOT take out a pay day loan. Don't even think about it. I know someone that has done that and these people will take you to the cleaners and will never leave you alone if you can't pay. Never give your phone number out and never never give out your bank account number. Listen to me and anyone else that has a comment like me. Ask some one for help as long as you pay them back. Don't borrow money just to buy something you happen to want, only for your important needs.

You know how to stop tour thumb from hurting? Stop hitting it with a hammer. Theses people going to these places really are dumb. Simple solution to this, DO NOT GO TO THESE PLACES. And if you are dumb enough to go to these places, dont complain about it.

Who in their Right Mind would want to borrow at 400% interest?!! Who would borrow at 30% interest? Only a fool. Work, save, pay your bills on time to stay out of the hold. Downsize, turn off the cell phone, cable, whatever it takes...but do not borrow from the wicked and the greedy.

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