PAY DAY LOANS ? NO PREDATORY LOANS AND WHY THEY ARE AFRAID OF FINANCIAL REFORM

[MNU1978]

I used to work private security for a company and they had me posted at a Check Into Cash center in El Cajon and while there I got to learn a bit of how they work. Contrary to what this dyke implies in her feature, they are NOT scamming people. Every time I watched a customer come in...and just before the transaction is complete and even BEFORE any paperwork is started, EVERY EMPLOYEE THERE STRESSED TO THE CUSTOMER THE HIGH INTEREST RATE AND THAT THIS SERVICE SHOULD ONLY BE USED SPARINGLY.

[MNU1978]

Oh yeah and something else; maybe its not so much Wall Street reform, but PERSONAL reform. People need to live within their means and STOP drinking every weekend. STOP going to casinos. STOP buying cars they cannot afford. This liberal bitch is vilifying an industry and specifically vilifying Check Into Cash by including them into her story and using the word "LOANSHARKING".

I'm NOT a fan of pay day loans; but they do provide a service in a crunch.

[MNU1978]

The problem is NOT with these payday loan centers; its with these schmucks that use them and DO NOT read the fine print at the bottom of those contracts. The contracts all DO specify the time frame in which a customer has to pay back the cash advancement and the contracts also DO specify that if the loan is NOT paid back in time; it will be sent to collections.

People need to be more responsible in how they handle their finances and STOP blaming others for their own stupidity!

[bbbuffalo]

Notice how Rachael uses phrases like "You better hope you can pay it back on your next payday" Well DUH! You know how much you are borrowing. You know how much the payoff is. You know how much your next check will be.

Do you really want the government to be your nanny. Should you give your money to Obama and have him give you an allowance? But if so, what's going to keep you from overspending?

By the way, the football field, garage, yacht, and huge estate put lots of people to work.

[thevirtueallliberal]

@bbbuffalo that's just the issue, people don't know how much they have to pay back . That's how they make their money . This isn't about anyone being any one's nanny . This is adding some consumer protections so people can make a well informed choice before they use these crooks . Yeah, "the football field, garage, yacht, and huge estate put lots of people to work". It also put allot of people out of business and home thanks to their high interest rates . What, do you work for them, ha..?

[lordrazi111693]

they sure sound like a bunch of lovely people....

(run!)

[robertdjwizard]

Come on people this is pathetic, Can't afford to make the next payment on your plastic card, car loan, mortgage, crying losers that's what our nation has become, want something? save up some money and stop paying interest on ridiculous rip off loans.

We are doom! half of the people is stupid and half are sharks what a combination of heroes and winners!

My beloved nation is the titanic sinking in the meddle of oil ocean good luck fellow Americans!

[eqsmooth]

They used to do this in bars in the 1980's in northern california. Get a loan then spend it on drinks in the place you got the loan. Nice.

[EPGAH]

Actually, check out Texas--I know it sounds jingoistic or whatever--but Texas has STATE laws limiting how much people can borrow as a percentage of their NET worth, therefore literally preventing the Unworthy from borrowing!

Texas is the State that took the LEAST damage from the recession...The two factoids might be linked!

[eriqbrown]

and thats how it should be! The rich should get richer. How is it fair for those free loading poor people to be broke and not be in debt? These Dems really need to learn a thing or two about being conservative with wealth. And healthcare.

[mollycanadian]

@eriqbrown The rich are getting richer. The rich own the government. Obama was going after the banks until they let him know in no uncertain terms that their "donations" would go to the Republicans if he didn't back off. He got the message. Bankers job is to maximize profit (legal obligation, actually) and they ignore systemic risk which will harm the economy.

[EPGAH]

@mollycanadian That sounds HORRIBLY out of character for Obama.

Obama has established himself soundly as the Bailout King. If you made massive, systemic mistakes, don't worry, it's not your fault, it's the Evil Middle Class, and he'll make us pay for the mistakes of the poor AND the rich--no tradeoffs required.

Rich will get bailed out with no promises of responsibility, and they get to keep their bonuses for their stupidity.

Poor get to keep living living beyond their means, no birth-control!

[mollycanadian]

@EPGAH Let's put responsibility where it belongs ... on Bush and Obama. Banks give tons of money to the campaigns of Republicans and Democrats so they "own" the government. Why do you think Obama cleaned up his language lately? Threats that banks will donate more to Republicans (who won't do anything differently either). The voting public has to demand reasonable regulations - and I emphasize reasonable.

[EPGAH]

@mollycanadian Who are we going to demand those regulations FROM? Both Republican AND Democrat are "beholden" to big businesses and most those big businesses own a bank or 2!

To put it a bit more poetically, both Republican and Democrat are two fingers of the same hand, reaching ever-deeper into my wallet!

Ironically, our best chance of fiscal responsibility/reform came from Ross Perot, who was a successful businessman himself, and thus immune to outside bribes

[mollycanadian]

@EPGAH Demand this from BOTH parties. Individual citizens vote for individual members of congress or senators not matter who pays their way. That's the beauty of the system.

[EPGAH]

@mollycanadian Essentially, to get TRUE reform, we need someone so rich they can't be bribed, but they might side with Big Business anyways, because of how they GOT so rich...

I liked Perot's promise to "Run America like a BUSINESS". If I interpreted it correctly, that would mean firing the excess Government Employees (Bureaucracy), and cut back or eliminate things that don't profit us, like Welfare and Foreign Aid!

Sadly, China does that already!

[eriqbrown]

@mollycanadian its cool. this kind of greed is enough to upset even people with a strong sense of humor.

[mollycanadian]

@eriqbrown They ignore these risks because risks aren't their business because they know that when it collapses, they can run to what someone calls "the nanny state" (your federal government who gets tons of campaign money from them) who will bail them out. It's a kind of perverse incentive, don't you think?

[EPGAH]

@mollycanadian They don't need to care about risks. Everytime they fuck up, the Government will bail THEM out just like the Government bails out other incompetents!

It's almost like a God Mode: All the profits are theirs to keep, but the losses are passed to normal people, who actually advised AGAINST giving to people who didn't deserve it!

[mollycanadian]

@EPGAH We agree on this one!

[mollycanadian]

@EPGAH We agree on the "God Mode." As for people not deserving it...that's what regulations are for. Some people will not qualify for a loan because the risk is too high. My family came from Europe and had no money. They managed to save enough to qualify for a mortgage. There's nothing wrong with being poor. There is something wrong with handing out bad loans.

[EPGAH]

@mollycanadian That was sort of the problem here. YOU had to save enough to qualify for a loan--let's call that being responsible?

What if you were a minority and didn't DESERVE a loan, but a law forced the banks to give you one anyways? The bank gets fucked for YOUR irresponsibility, and either the Government has to bail them out for following orders, OR let them die because they followed unfair race-based, rather than merit-based LAWS!

[mollycanadian]

@EPGAH I think rich folks get in over their heads just as much as poor folks.

[mollycanadian]

@eriqbrown Lots of economists (not bank CEO's) agree that there needs to be more supervision (regulation) to get the economy out of this "doomsday cycle". The doomsday cycle, let me repeat again, is that weak fiscal policies allow big business to fail and then gets paid handsomely (by you the taxpayer) to take ridiculous risks.

[mollycanadian]

@eriqbrown So big business gets it - take huge gambles to get paid handsomely and don't worry about the costs cause they'll get their money back either from the risk being successful OR, if totally unsuccessful, from the taxpayer. Then the cycle starts again. Notice the banks are doing superbly well so soon after crashing and being saved? Is this what you mean when you say "and that's how it should be?"

[eriqbrown]

@mollycanadian i was being facetious. you couldnt tell when i said "How is it fair for those free loading poor people to be broke and not be in debt?"

[mollycanadian]

@eriqbrown Oops! I have to lighten up!

[robertdjwizard]

I don't think is this sharks responsibility, it's the dumb stupid people who can't live up to their means and spend more than what they earn, they got all the plasitc cards in the whole entire world, hundred dollars shoes, designer hand bag.

Learn to cook a decent meal, make an effort to minize expenses and stay away from stupid bimbos shows who get everything free from the manofacturers and pull your head out of the dark place where the sun never shines!

[mollycanadian]

@robertdjwizard

I think your reference to "stupid poople" would mean the majority of Americans are stupid. Everyone is so in debt it's a wonder the economy is recovering...slowly. I don't see many poor people with designer handbags, Walmart maybe.

[mollycanadian]

@robertdjwizard

If banks can't make themselves "do the right thing" because they believe in making the bucks, can't live up to what they've done and then go to the government which has not choice but bail them out, then they should be regulated. There are scam artists everywhere and they certainly shouldn't be the banks. Who knows how bad this would have been if the banks weren't bailed out?

[EPGAH]

@mollycanadian Remember, though, in addition to bailing out the banks, we have to bail out the idiots who took out loans they couldn't afford, and "economic refugees" from lesser countries. i.e., illegals.

If you can fuck up your own country and then move on to one that's still good, that's kind of the Ultimate Bailout, isn't it?

[mollycanadian]

@EPGAH I'm confused...how did the country bailout the people who couldn't afford their loans? Through bankrupcy?

[EPGAH]

@mollycanadian Obama put out a special fund for people who had mortgages they couldn't afford--AND established a special bureaucracy to "help minorities gain access to unsecured capital"--I.e., more loans to people who can't afford it, just because they're minorities. It's one thing not to learn from your mistakes, but doing it again ON PURPOSE is suicidal at best!

[mollycanadian]

@EPGAH Considering the huge bailout the banks got, I'm sure the bailout for these people was paltry. I think poor people could afford a house - just not the kind that are on these reality television shows where everyone wants a $500,000 home! My first house cost me $12,000 in the country - it had been struck by lightening! We renovated and sold it for twice the price 2 years later. People have to get back to starting small....

[classicallady]

@robertdjwizard Robert I don't agree with you on this one. There are ppl out there who can barely make it on their minimum wage and emergency can happen to anyone. The answer is regulation

[mollycanadian]

These places are regulated in Canada...and the poor are better off without these sharks burying them in debt they can't afford. The problem goes deeper. Banks won't let some poor folks open accounts - hence the sharks start to circle.

[EPGAH]

@mollycanadian Well, here in America, some folks who didn't deserve loans got them, but they took the money and ran...Then our dimwitted President bailed out the banks--and by association, the people who took out loans they had no intention of repaying...So it is actually GOOD news that banks are starting to discriminate again!

Tell me, do you have anyone you "loan" money to, but you both know it's actually a GIFT? Who bails YOU out for that mistake?

[mollycanadian]

@EPGAH Here payday loans are very different from any other loans. You sign over your paycheck for the advance loan. This is not done through a bank but through special "cash advance" type of establishments that are only located in the inner city where I live.

[mollycanadian]

@EPGAH

I agree that it is GREAT news that commerical banks are starting to discriminate. Here, the federal government, has introduced new requirements for Canadian banks to ensure banks don't sneek through small down payments for mortgages for people who really can't afford it.

[mollycanadian]

@EPGAH I really believe in regulations, especially after any private/public institution has messed up on a large scale. Not everyone "does the right thing" and it's taxpayers that end up either bailing them out or getting duped. Would be nice if we were all super vigilant and savy with our money...

[classicallady]

@mollycanadian Ditto ditto

[EPGAH]

@mollycanadian Clinton made Payment Delinquency a "Racial Trait"--if that's true, the minorities should be ashamed of themselves! So banks were FORCED to loan to habitual welshers. Not surprisingly, those types took the money and ran!

BUT the basis of Deregulation--the way it was sold here, anyways--is that the incompetent would crash and burn, leaving more room for "new" businesses, or for existing business to move into the vacancy.

Darwin's Will Be Done, right?

[mollycanadian]

@EPGAH Banks make risky loans because it pays them to do it .. . they even take out insurance to make sure they make money on it! Obviously deregulation didn't result in the incompetents crashing and burning. They were too big to be allowed to do that. Survival of the fittest from another angle - the bigger you are the more everyone rushes around to save you. Making banks smaller may be one piece of the puzzle.

[EPGAH]

@mollycanadian That's a good idea, let the Titanic banks sink, and a fleet of smaller ones will pick up the pieces.

As to "The bigger you are, the more everyone rushes around to save you"? I have to go with "hell no" on that one. China is not BAILING OUT America, they are making a LOAN to us that we keep spending ON THEM!

Lesser countries are getting uppity now that America can't put them in their place.

Do you think North Korea or Iran would dare threaten the world with a strong America?

[mollycanadian]

@EPGAH It's in China's best interest that the economy of the US doesn't fail. The only reason China is doing well is that the whole world sends raw materials there to be manufactured by cheap labour. If we don't consume, they don't work and down the tubes they go.

[EPGAH]

@mollycanadian Yes, but China holds their loan over America's head, so we don't complain too loudly about their LEGENDARY Human Rights record (FREE Prison Labor is why China's so "cheap"!), or when their spies steal American tech--or heck, when their FACTORIES start making toxic knockoffs of American products and ruining the good name of the latter, or most recently, when China snaked Iraq's oil out from under American soldiers, without compensation or so much as a "Thank You Note"!

[EPGAH]

@mollycanadian Hell, even some credit-cards don't charge INTEREST, but they charge insane FEES! Now they found out that NOT being a bank frees them of ALL regulation!

But even the most predatory lenders don't FORCE you to take out a loan, you take it because you want something you can't afford on your own. If you take out a loan to MAKE money, that's one thing, but too many people take out a loan for something they don't NEED: A bigger house/car/boat/TV/etc.! Why should we subsidize THAT?

[mollycanadian]

@EPGAH Exactly. If someone wants "more" then they should be able to afford it. With some regulations people would have to show they can afford it. With no rules to this game, there's no reason for banks to say no to anyone...in the end they get what they want.- profit or bailout.

[mollycanadian]

@EPGAH Another point here. One bank in particular took out a form on insurance as homeowners were being crushed under the weight of subprime mortgages. They made money on it - $5M?

I think mortgages were sold to people who couldn't afford it DELIBERATELY for the profit and with the knowledge that a bailout would be there if needed. Poor folks, the middle class and rich folks all got piggy.

[EPGAH]

@mollycanadian Yes, they should return to starting small, living within their means, etc., but for what, 60 years(?), being called a "cheapskate" or equivalent has been an insult second only to racial slurs. Offer people money and they'll take it--no matter how obvious the strings are--then complain about being choked by the strings!

As to mortgage profits, it's worse than that: Banks SOLD the debt as "securities"--stocks! Foreign countries WILLINGLY bought debt!

Should we laugh or cry?

[mollycanadian]

@EPGAH I meant Golman Sachs made $5M in one day on mortgages that tanked.

[mollycanadian]

@EPGAH I'm really spaced out...Goldman Sachs made $51 million in one day. Geesh. I need a nap!

[AlfredSwearengen]

Wow, it really burns a jew when a goy has the nerve to be a millionare. How dare he! But maddow has nothing to say about her own thieving, scamming, jewish race bankrupting America.

[phillipmarch22]

Excellent video! Had to go to one of these places in Vegas and if you want to talk about a rip off raping, one of these pay day loan places is your one stop shop for the reaming of your life. We should regulate the fuck out of these guys! Excuse my french! I speak Spanish much better! (-:

[classicallady]

@phillipmarch22 Entonces que se van a hoder! LOL

[allbabiesareatheists]

Good video! In Canada the reform is ongoing when it comes to payday loans. Where they used to get the huge 3-figure interest was in a "cheque cashing fee". Now they have to be totally a loan, with the whole thing explained in easy to read contract form. Harder to sucker people when you must list every detail and the actual percentage rates.

I'm subbed!

[skshield3]

Socialism for the rich and capitalism for the poor.

[385Mercedes]

Thanks, Bruce!! Just one more very sad sign of social polarization, rich vs. poor, us vs. them. Whatever happened to democracy?

[classicallady]

@385Mercedes Whatever happened to decency?

[justonefirefly1]

This is no longer a free market it is a free for the rich.

[classicallady]

Bet Ron Paul thinks it's right! The exploitation is disgusting

[classicallady]

@classicallady Great one B. *****

[thevirtueallliberal]

@classicallady thanks Tat ...! Have a good weekend, I'm out Bruce xoxo

[classicallady]

@thevirtueallliberal You have a cool one too. Enjoy! Lovies xx T