TD Bank has asked me to take my business account elsewhere.

[highland145]

But, if you can't afford something then you should not buy it, no? And if you are behind in bills (which would happen with minimum wage because living cost is so damn high these days) then a short term loan is not going to help if you can't make ends meet anyway. You need to make much more drastic changes such as move.

Naive.

You bring home $2K.
Rent $500...shit hole, even here
Car payment...$300
Lights, water, phone, cable, food, gas, car insurance, clothes, kids(?+ their costs), etc...

You're poor.

Can't get government help because you make too much $$ and have a car. You do, however, get EITC, that you blow ($6K) in 4 weeks.

Oh, snap. You need $300 to fix your car. Where are you going to go? You have to get to work and can't walk 21mi.


Leroy will give you $100 for $125 on Friday. :awe: for Leroy, unregulated.

I'll only charge you 35%, over 6 months, if you aren't a dead beat. But you probably have bad credit because....you're poor and I won't lend you.

And no bank will lend $300.

And finance is not taught in the schools. At all. The cycle continues.

 

[rudeguy]

Naive.

You bring home $2K.
Rent $500...shit hole, even here
Car payment...$300
Lights, water, phone, cable, food, gas, car insurance, clothes, kids(?+ their costs), etc...

You're poor.

Can't get government help because you make too much $$ and have a car. You do, however, get EITC, that you blow ($6K) in 4 weeks.

Oh, snap. You need $300 to fix your car. Where are you going to go? You have to get to work and can't walk 21mi.


Leroy will give you $100 for $125 on Friday. :awe: for Leroy, unregulated.

I'll only charge you 35%, over 6 months, if you aren't a dead beat. But you probably have bad credit because....you're poor and I won't lend you.


And finance is not taught in the schools. At all. The cycle continues.

Squirrel is from the hat. They don't have poor people up there.

 

[highland145]

Squirrel is from the hat. They don't have poor people up there.

Soylent green?

 

[highland145]

The point is that it's sad and wrong that the government is tyrannical enough to decide to mess with honest, hard working American companies who are doing nothing wrong.

Regulated, inspected, licensed, taxed, completely above board...

 

[alcoholbob]

Personally I think the opposite should be more in play. I don't do business with an entity that holds political views that I don't agree with. Chickfila, hobby lobby, papa johns, etc... I sure wouldn't bank with someone that had issues with gun shops.

In a free market sure. But when bank accounts at a bank are insured by the government -- aka the taxpayer, and the bank's investments are covered by the government from loss--again, the taxpayer--it's completely immoral, since no individual has the right to opt-out of bailing out the entity other than to go to prison. It's like public restaurants getting tax breaks from state governments while discriminating on the type of client they wish to accommodate.

 

[Carson Dyle]

Personally I think the opposite should be more in play. I don't do business with an entity that holds political views that I don't agree with. Chickfila, hobby lobby, papa johns, etc... I sure wouldn't bank with someone that had issues with gun shops.

That was where I was going with my original question ... I thought it might be an association thing. But if some bank refuses to do business with pawn shops or payday loan businesses, who the hell in the public is going to know? I have no idea who my bank does or does not do business with.

 

[highland145]

That was where I was going with my original question ... I thought it might be an association thing. But if some bank refuses to do business with pawn shops or payday loan businesses, who the hell in the public is going to know? I have no idea who my bank does or does not do business with.

Exactly. You don't know who corporations are giving $$ to either. So bennett not supporting hobby lobby or chick fillet because he doesn't like their public policies is silly unless he has vetted every business he gives $$ to.

 

[rudeguy]

That was where I was going with my original question ... I thought it might be an association thing. But if some bank refuses to do business with pawn shops or payday loan businesses, who the hell in the public is going to know? I have no idea who my bank does or does not do business with.

If it were the banks making this call, I would understand and be 100% ok with it. But the fact that its back door government regulation is what pisses me off.

Jesus...I don't even want to know how many Obama phones get bought through us ever single month. But Obama's pissing match with the banks ends up costing us God knows how much.

Thanks Obama.

 

[highland145]

If it were the banks making this call, I would understand and be 100% ok with it. But the fact that its back door government regulation is what pisses me off.

Jesus...I don't even want to know how many Obama phones get bought through us ever single month. But Obama's pissing match with the banks ends up costing us God knows how much.

Thanks Obama.

Costing who? Businesses? And there is no pissing match. The banks aren't going to fight. Your ACH business is different but my bank makes very little on my account. They don't want or need my $$ when they can borrow it for free from the reserve.

 

[boomerang]

Costing who? Businesses? And there is no pissing match. The banks aren't going to fight. Your ACH business is different but my bank makes very little on my account. They don't want or need my $$ when they can borrow it for free from the reserve.

I think he might be thinking of how many businesses were unable to move their accounts somewhere and were forced to close. The goal in this was to force businesses out of business. That typically results in job loss that ripples out.

Situations like this are what make me wonder how we can have so many that not only never think to question government but that worship government. The people that formed this nation were brave men that sacrificed a whole lot for less egregious actions instituted by the King of England. Now, when our government seeks to put businesses out of business, it's all just La de Dah.

 

[highland145]

I think he might be thinking of how many businesses were unable to move their accounts somewhere and were forced to close. The goal in this was to force businesses out of business. That typically results in job loss that ripples out.

Situations like this are what make me wonder how we can have so many that not only never think to question government but that worship government. The people that formed this nation were brave men that sacrificed a whole lot for less egregious actions instituted by the King of England. Now, when our government seeks to put businesses out of business, it's all just La de Dah.

That makes sense but I doubt the banks have lost much income. Different fo the business owners.

Let's say they put me out of business. The need is still there. Someone will lend but now it's unregulated. Not to mention the crap ton I pay in income taxes that will be lost.

 

[Carson Dyle]

That makes sense but I doubt the banks have lost much income. Different fo the business owners.

Let's say they put me out of business. The need is still there. Someone will lend but now it's unregulated. Not to mention the crap ton I pay in income taxes that will be lost.

So, is there actually a great opportunity in your business to launder money? I would think state regulators would require impeccable record keeping, making it rather difficult.

 

[highland145]

So, is there actually a great opportunity in your business to launder money? I would think state regulators would require impeccable record keeping, making it rather difficult.

Zero. I'm not Walter White with a car wash. It would be difficult to even cheat on my taxes. My software tracks every penny/transaction. I'd have to have to separate computers and run different accounts on each. That means telling my help. No thanks, I'll just pay what I owe.

 

[cabri]

Interesting article
Link

The $46 billion payday lending industry is in for a big blow

The $46 billion payday lending industry is about to suffer a big blow. The Consumer Financial Protection Bureau's release of new payday lending regulations is imminent. The new rules could crack down on high-fee short-term installment loans, like the kind doled out by car-title and payday lenders, according to the New York Times.

...

 

[TwiceOver]

Move your business here to South Dakota. We love loan sharks and our banks would gladly take your money. You'll probably be able to increase your interest rate too allowing you even higher profits.

 

[highland145]

Fucking great. I hope the cfpb doesn't thrown me into the payday pot. Fucking great.

S.C. has regulated the heck out of that industry. A customer can only have 1 payday loan at a time in the state. The rate is still 390% though.

The other problem is that these borrowers will still need $$. Now they get to get from the guy on the street, 25%/week with no regulation.

 

[IGBT]

so who makes / enforces the existing "banking rules" the industry has to comply with??

 

[highland145]

Move your business here to South Dakota. We love loan sharks and our banks would gladly take your money. You'll probably be able to increase your interest rate too allowing you even higher profits.

D:

 

[werepossum]

But, if you can't afford something then you should not buy it, no? And if you are behind in bills (which would happen with minimum wage because living cost is so damn high these days) then a short term loan is not going to help if you can't make ends meet anyway. You need to make much more drastic changes such as move.

Moving costs money, which if you don't have $300 to fix your car you certainly don't have. That also presumes that people are living above their means. When you're poor, you live on the knife edge, always, no matter how carefully you live. There are always unexpected short term expenses, and some of those have the potential to cost you your job or your home.

The point is that it's sad and wrong that the government is tyrannical enough to decide to mess with honest, hard working American companies who are doing nothing wrong.

Amen. At least Obama's cronies still scurry like cockroaches once enough light is shone on their activities.

I think he might be thinking of how many businesses were unable to move their accounts somewhere and were forced to close. The goal in this was to force businesses out of business. That typically results in job loss that ripples out.

Situations like this are what make me wonder how we can have so many that not only never think to question government but that worship government. The people that formed this nation were brave men that sacrificed a whole lot for less egregious actions instituted by the King of England. Now, when our government seeks to put businesses out of business, it's all just La de Dah.

Well said. Nowadays far too many people are eager and happy to see the government boot come down, as long as it's on someone else's neck.

 

[TwiceOver]

D:

Price of ridiculous sums of money lining your pockets.

You should see it here. Driving down the main street of the city I live. Casino (state sponsored video lottery), casino, casino, pay day lender, casino, casino, title loan, casino, payday lender, casino, casino, casino, payday lender. Then if you drive outside of city limits there's a real casino.

Like clearly one is the problem for the other.

Tell me your mouth doesn't salivate when you see this:

 

[TheFamilyMan]

Fucking great. I hope the cfpb doesn't thrown me into the payday pot. Fucking great.

S.C. has regulated the heck out of that industry. A customer can only have 1 payday loan at a time in the state. The rate is still 390% though.

The other problem is that these borrowers will still need $$. Now they get to get from the guy on the street, 25%/week with no regulation.

But you are in the pot already. You might not be the top-level in the the bucket that is making 390% on a customer but you sure are in the bucket somewhere. Can't believe you're whining about being classified as the business type you self-admittedly running? A spade is a spade. Period.

Although this has taken an overly long time to come about, reigning in the predatory lending market is good for everyone. Business like yours are just the 21st century equivalent of the loan sharks of the 70's and 80's. Not sure why you're trying so hard to assure everyone you're magically different from all the other short-term lending services. Their core...your core...is built around taking advantage of a consumer. It doesn't matter if the consumer put themselves in their poor position (wanting a new 70" TV while workign at McD's) or if life put them in that position (unexpected car repair with little-to-no savings). I'm all for personal responsibility and people are free to make any bad decision they want...they have to live with that decision. Same goes for you...you can make money however you want just don't whine when you're sandboxed in or regulated for what you really are. I'm sure you'll learn new tricks to stay profitable in that line of work...the successful ones always do.

 

[highland145]

Price of ridiculous sums of money lining your pockets.

You should see it here. Driving down the main street of the city I live. Casino (state sponsored video lottery), casino, casino, pay day lender, casino, casino, title loan, casino, payday lender, casino, casino, casino, payday lender. Then if you drive outside of city limits there's a real casino.

Like clearly one is the problem for the other.

Tell me your mouth doesn't salivate when you see this:

What I see is a high default rate and pains in the ass to collect unless SD has more helpful collection laws than SC does. The payday loan guys have zero recourse to collect, other than a default judgement (useless), if the customer decides to not pay..

Moving costs money, which if you don't have $300 to fix your car you certainly don't have. That also presumes that people are living above their means. When you're poor, you live on the knife edge, always, no matter how carefully you live. There are always unexpected short term expenses, and some of those have the potential to cost you your job or your home.

QFT

so who makes / enforces the existing "banking rules" the industry has to comply with??

Our state does but the fed can/will trump them with the cfpb.

 

[highland145]

But you are in the pot already. You might not be the top-level in the the bucket that is making 390% on a customer but you sure are in the bucket somewhere. Can't believe you're whining about being classified as the business type you self-admittedly running? A spade is a spade. Period.

Although this has taken an overly long time to come about, reigning in the predatory lending market is good for everyone. Business like yours are just the 21st century equivalent of the loan sharks of the 70's and 80's. Not sure why you're trying so hard to assure everyone you're magically different from all the other short-term lending services. Their core...your core...is built around taking advantage of a consumer. It doesn't matter if the consumer put themselves in their poor position (wanting a new 70" TV while workign at McD's) or if life put them in that position (unexpected car repair with little-to-no savings). I'm all for personal responsibility and people are free to make any bad decision they want...they have to live with that decision. Same goes for you...you can make money however you want just don't whine when you're sandboxed in or regulated for what you really are. I'm sure you'll learn new tricks to stay profitable in that line of work...the successful ones always do.

lol Everyone wants to look down on someone. Glad I could help you out.

Someone doesn't like my 35% rate? Go somewhere else. My sister's markup is 400%. Do you look down on her industry as well?

Edit: What do you think will happen if my industry (not payday loans) is regulated out of business

 

[Phoenix86]

lol Everyone wants to look down on someone. Glad I could help you out.

Someone doesn't like my 35% rate? Go somewhere else. My sister's markup is 400%. Do you look down on her industry as well?

Edit: What do you think will happen if my industry (not payday loans) is regulated out of business

Explain to an average joe like me what's the difference between payday loans and your services? At a glance I see you two companies in the same boat. You're short-term loans to people with poor credit for higher than normal interest rates (but not astronomical).

 

[highland145]

Explain to an average joe like me what's the difference between payday loans and your services? At a glance I see you two companies in the same boat. You're short-term loans to people with poor credit for higher than normal interest rates (but not astronomical).

Normal rates for a 550 fico. Lower credit scores, higher interest rates, higher charge off go hand in hand. $25.3K last year on ~$350K owed. Part of the cost of doing business but that was my $25K.


Paydays are due, in full, in 2 weeks. So borrow $300, payback $390 in 2 weeks or pay the $90 interest charge and owe $390 in 2 weeks. The average customer just can't get out.

My industry is installment loans, 1 payment/month. My shortest is 4 months. I only did 12 of those in all of 2014. The average is 8-10 months long with a ~$725 average balance. Usually, ~$1K is my highest loan. My $300 cash out loan, with a $390 payback, is over 6 months. The payday guys could potentially earn 12 times what I do in that 6 months.

I'm no white knight like thefamilyman. My goal is to make $$. But I also have to make good decisions so that I get my $$ back. Like I said, I have very little recourse if a customer doesn't pay. I'm not going to intentionally overload someone or make a known deadbeat.

My industry if far from perfect. Many don't care if they pile on a guy in trouble. Employees break fair debt collection rules every day. The underbelly of low finance.