Conservative Viewpoints

"Government is not the solution…it is the problem" -Ronald Reagan

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Letter to the Editor: Payday Loan Became Vicious Hook

Posted by Stephen on January 25, 2009

We, the people of this great commonwealth, owe ourselves freedom from exploitation by payday lenders. This must not be just a problem for lower-middle- class workers.

We each have different needs. So we each seek different solutions. The solution should not turn into a bigger problem, as payday loans have.

I took out an open-end, unregulated payday loan in December. I did not know the loan was not regulated until I made a few phone calls in January. The loan was presented to me by the payday lender’s manager as a solution to re-writing a check each month. I was told my payments would be only $50 per month. The first payment was $50, but the second ballooned to $294.45.

I live on a fixed income and a tight budget. I cannot afford such payments. My loan was not taken out for a vacation in Paris. I used the money to buy food for myself and my child.

Until the laws are changed to protect the borrower, please — let the borrower beware! These loans are bait on a long hook that will lead more people into financial crisis.

Gina Gregory


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