Salt Lake City battles payday loans
SALT LAKE CITY – Desperate times drive some people to a payday loan they can’t afford.
According to a report by the Center for Responsible Lending, 91 percent of people who go in for a one-time loan end up coming back up to five times over the course of a year. The center calls it a “debt trap.”
Sunday Edition: Payday lending and achieving financial freedom
KSL explores the practice of payday lending and discusses Deseret Media Companies’ new campaign to help women gain financial freedom.
Payday lenders say that almost all borrowers pay off their short-term loans on time and can afford them. However, a computer-assisted analysis of court records by the Deseret News showed that payday lenders sued more than 11,000 Utahns in small claims courts during 2009. In fact, Provo payday lender cases accounted for 88 percent of the small claims court cases.
The Utah Legislature has considered several restrictions on payday lenders in the past, including interest rate caps, but those efforts have failed every time.
The differences between payday lenders and banks and credit unions are vast when it comes to regulation and interest rate caps.
“Credit unions that are supposed to be looking out for the people are offering payday loan products to their customers that are between 254 and 318 percent interest.” – Linda Hilton, Coalition of Religious Communities
Several credit unions are now offering small loans with steep rates. The Utah League of Credit Unions argues the loans are a good alternative to other payday loans and that their members want them.
“The reality is that even our employees occasionally seek payday loans, and we want them to have the best alternative in the marketplace,” said Scott Simpson, president of the Utah League of Credit Unions.
But the Coalition of Religious Communities wants credit unions to pull these types of loans.
“Credit unions that are supposed to be looking out for the people are offering payday loan products to their customers that are between 254 and 318 percent interest,” said Linda Hilton, with the Coalition of Religious Communities.
Several cities have considered restricting payday lenders. Ogden recently limited the number of payday lenders in that city to 15; 21 such lenders already exist within city limits.
The existing payday loan businesses will be allowed to continue operating in Ogden, but if some close, others will not be allowed to take their place.
Story originally published on KLS.com on July 11th 2010. The information in this story may no longer be accurate.
Tagged with: Salt Lake City payday loans
Filed under: Utah Payday Loans
Like this post? Subscribe to my RSS feed and get loads more!
This is a beneficial post, I was wondering if I can use this blog post on my website, I will provide a link back to your site. If this is a problem please let me know let me know and I will take it down right away.
Thank you for building your blog site, I located you on Google and I need to say I’m impressed. Appreciate it yet again…
good articles here hopefully i learned from it.
I’m impressed!! Really informative blog post here my friend. I just wanted to comment & say keep up the quality work. I’ve bookmarked your blog just now and I’ll be back to read more in the future my friend! Also nice colors on the layout, it’s really easy on the eyes.
I just consolidated all my loans into one. I suggest you consolidate your loans too. If you have any questions, just reply, I will be back to answer some questions.
How do you do it, awesome SERP ranking of your website, Google pointet me directly to your site and what I found here is awesome, thanks guys.
Wanted to share my opinion here, this websites delivers, never found so much information about a specific topic like what I found here, thanks.
Really informative blog post here my friend. I just wanted to comment & say keep up the quality work. I’ve bookmarked your blog just now and I’ll be back to read more in the future my friend! Also nice colors on the layout it goes well with the blog in my humble opinion
I found this blog from Facebook (a friend of mine posted it). After reading the article, I of course clicked Like then shared it. More power.
I agree! Payday loans are not a ‘magic pill’. It all depends on ones financial history, current status and more importantly FUTURE plans. Sometimes it’s more appropriate to eliminate unsecured debt. But as with anything, it’s best to get advice from a qualified debt professional.
When i rather trust your current perspective, your blog is absolutely great, superior as well, refueling.
credit-report-free.totalh.com – try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.
This is my first visit to your blog. We are starting a new initiative in the same niche as this blog. Your blog provided us with important information to work on. You have done a admirable job.
Unfortunately in our family we tend to be getting our financial house in order just when Christmas comes along and then, “schbleck” – another few thousands dollars down the toilet. Not a nice way to look at Christmas I know, but it is frustrating.
Thank you for this very informative article, I wish you much success in all you do. Richard
The banks sure have tightened their standards when it comes to giving loans and mortgages. I think thisgs will only get harded as we dive deeper into this credit crisis. Hopefully things will get better soon!
found your site on del.icio.us today and really liked it.. i bookmarked it and will be back to check it out some more later
It’s well known that cash makes people independent. But how to act if one doesn’t have money? The one way is to try to get a home loan or just secured loan.
I must say that this was a very constructive and informative
read! I would like to thank you for taking the time to write
this post and share this with us all!
I am doing research for my university paper, thanks for your helpful points, now I am acting on a sudden impulse.
- Laura
Thank you for your fantastic stuff just about this post. Could you assist to find the thesis writing service or dissertations writing service to order the thesis example in?
Merchant cash advance can be more helpful than any of these loans. Great content on how the small businesses are getting ignored in these issues, especially when looking for small business loans or financing. The success of merchant business cash advance funding can be seen in the case studies on small business loans.
Even thesis service can not write such superb thesis help about this post and perchance, you work for dissertation writing service. If yes case I could buy a thesis paper from your corporation straight off.
Thanks for sharing!
great,very good article, thx for sharing with us
Have a look at these guys. It is early days and they are UK focused, but they seem to have the right idea about how to provide payday loans
Great article, thanx for sharing !
Glad we could help and thanks for your comment.