Talk:Payday loan
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[edit] PLWatch
The guys that write the "Payday Loan Industry Watch" run several online payday loan stores - I submit that is an extremely biased link and suggest it be removed.
- Bias is okay in an external reference site. Inaccuracy, however, is not. If you have a reliable source discrediting the website's claim to be written by "independent observers," that may be good cause for unlinking. Otherwise, the site looks fine to me. Matt Fitzpatrick 19:00, 24 August 2006 (UTC)
- We do not run any online payday loan stores. (Or any payday loan store. Or any kind of store, in fact.) If you want to understand who we are and why we do what we do, please visit: Payday Loan Industry Watch's About Us Page. Will Stotler, PLIWatch Managing Editor 13:58, 13 September 2006 (UTC).
[edit] Why No Actual Lender Links?
Other wikipedia articles in the financial sectors link to the top banks in each sector. Why is payday loan different? Are link spam concerns affecting the quality of the article?
- Feel free to add them if you like but please make sure they are legit. The Payday loan page gets many spam links added to it. If the link looks the least bit suspect, it gets removed. Monkeyman 1 July 2005 01:02 (UTC)
[edit] U.S. Centric
"...but in most states payday loans are legal..."
US-centric bias, should be fixed?
[edit] Payday defense
Payday Loans - Consumer Driven Industry Most editorial commentary is very biased about this service but it must fill a need or the industry would not work in a market driven economy. If there is NO need, then there are NO payday lenders.
On 5/18/05 there was a US network broadcast on 60 Minutes . In their editorial they blasted the payday loan industry, but anyone who knows about this service is VERY aware it's an emergency loan and should not be used for long-term usage. It is intended to help those in a bind and the fees are lower than bouncing a check at the bank or paying for overdraft protection.
The 60 Minutes article is/was a very subjective view of someone who thinks they know what's in the best interest of all consumers! What about all the people who use this service like it should be used? I know there are payday lenders who have honest and favorable comments published on their websites. For example, you can find positive comments from people that have benefitted from payday loans from www webcashadvance com/testimonials.html (URL broken to prevent SEO). The payday loan industry also had a professional organization CFSA where consumers can find out more from the positive point of view.
- It seems almost a shame not to link to the CFSA site directly from the article. It's highly relevant to this subject, but also highly POV. What a dilemma! Matt Fitzpatrick 06:52, 26 July 2005 (UTC)
[edit] Details of "illegal" payday lending
Payday lending isn't legal or illegal per se in various states, as I wrote in the article. It's a little more complicated than that. More precisely, most states have usury limits: hard interest rate caps calculated strictly by APR. Therefore, short term, low principal lending in general is highly unprofitable in those states; even states with loose usury limits like Colorado (45%) aren't even close to what a payday lender needs to operate.
"Rate exportation" is the mechanism by which payday lenders can operate profitably in all states. Rate exportation works like this: by funding loans from an out of state bank, the transaction is governed by the rules of the state that bank is chartered in. Rate exportation was established by the unanimous 1978 Supreme Court ruling Marquette v. First of Omaha, 439 U.S. 299. This is the same mechanism by which credit card issuers in South Dakota and Delaware-- states that abolished usury limits decades ago-- can still offer credit cards to anyone nationwide.
I think this nuance is worth mentioning, but I'm not sure how to express it simply and concisely. It's a bit convoluted! Matt Fitzpatrick 06:43, 26 July 2005 (UTC)
