Payday loan industry on the Union Leader

[highline]

http://tinyurl.com/5b97zm

I have found myself in an interesting comment debate with other UL readers.  I would be very interested to see what some of your responses would be.

[John Edward Mercier]

I entered one... but the UL seems to be limiting some of my responses.

The people using PayDay Loans are not ignorant... just using what is available to them.
The restriction on PDL businesses most likely won't actually have the greatest affect on them, but the very consumers that others feel they are protecting.

Short term loans with limited credit backgrounds necessary for a speedy transaction always entail high risk, and thus high returns.

[Roycerson]

Few mention the one issue about payday loans that concerns me.  Often these loans are secured with a post-dated check.  When the borrower defaults the police are then sent to collect and the state prosecutes for check fraud.  The borrower is arrested and ends up with a felony on his record, stripping him of his ability to own a firearm or vote and all the other crap that goes along with being a convicted felon.  If things are going particularly bad for him he loses his job while he's in jail begging his relatives for bail since he obviously doesn't have the money, making it even more difficult to get out of the financial bind he's in.  A bit harsh IMO.  I've seen it happen several times.  I'd be happy to see the government get out of regulation AND enforcement.

[John Edward Mercier]

Felons can't vote? Since when.
If I owe you money, under a contract I voluntarily agreed to... and I don't make good... your not worth saving from the government. And for the record... the real Mafia wouldn't 'lock you away'... not even if you beg and cry.

[slim]

How long does it usually take for a comment to be approved? I submitted a comment about 30 minutes ago and still is not showing up.

Edit: Never mind the comment has been approved only took a few hours

[Jacobus]

+1 to Roycerson

I'm not particularly sympathetic to a business that depends upon government coercion to collect debts (if this is indeed the case, as I had assumed before that they would use private repo).  That amounts to the government subsidizing the business.

[grolled]

Few mention the one issue about payday loans that concerns me.  Often these loans are secured with a post-dated check.  When the borrower defaults the police are then sent to collect and the state prosecutes for check fraud.  The borrower is arrested and ends up with a felony on his record, stripping him of his ability to own a firearm or vote and all the other crap that goes along with being a convicted felon.  If things are going particularly bad for him he loses his job while he's in jail begging his relatives for bail since he obviously doesn't have the money, making it even more difficult to get out of the financial bind he's in.  A bit harsh IMO.  I've seen it happen several times.  I'd be happy to see the mafia get out of regulation AND enforcement.

Almost every state does not include "post-dated" checks as criminal in nature as either worthless checks or check fraud.

[ReverendRyan]

In most states, it's usually a tiny misdemeanor of IBC (Issuance of a bad check) or a slightly harsher misdemeanor TBC (Theft by check). In order for it to be check fraud, there would have to be an actual element of fraud, such as misrepresenting your salary to the loan issuer, etc.

[highline]

I am surprised that savvy criminals have not figured out that under our bad check law, they could write all the bad checks they want and immediately go to the bank and issue a stop payment order.  This would make them immune from prosecution.

I think it would be terrible and criminal in itself - but legal under state law.

[ReverendRyan]

I am surprised that savvy criminals have not figured out that under our bad check law, they could write all the bad checks they want and immediately go to the bank and issue a stop payment order.  This would make them immune from prosecution.

I think it would be terrible and criminal in itself - but legal under state law.

That not covered by general fraud laws?

Then again, they can still add him to a shared bad check registry and go after him for collection of the check amounts plus all fees, which sounds like a more free market solution than prosecution anyway.

[John Edward Mercier]

Actually the bank would charge the account for each stop payment, so its costly.

The act of recovery wouldn't be the initiation of force/fraud... the original act of non-payment would be.

[KBCraig]

Banks love overdrafts. That's why they offer "overdraft protection". My bank has gone up to $35 per overdraft -- helluva interest rate for a $100 loan for less than a week.