Re: Payday Lending Part Deux

On Sat, 17 May 2008 22:56:48 -0400 Mikko Peltoniemi <mikkopel@[EMAIL PROTECTED]
>
wrote:

:>Boron Elgar wrote:

:>> Fraud, the basis of pyramid and Ponzi scams, has been illegal for a
:>> long, long time.  Again, the difference is quite stark in that no one

:>As it should be. And there is a possibility with a pyramid scheme
:>that you will get money. You might even get a lot of money. Does that
:>make it good?

Its entire basis is fraud.

Now, if the schemers disclosed that you would lose your money if X people
had
already signed up etc. then it might be a different story.

My sister called me once about such a scheme. I explained the steps to her
and
she saw that it was based on fraud.

:>> is hits the neighborhood selling pay day loans. There is no intent to
:>> defraud involved. Why don't you see that?

:>I just don't see how the practices they use could be construed as
:>anything less than trying to defraud consumers.

How?

Is the cost of the loan not disclosed?

What part of the process involves fraud?

:>> If an guy goes to the local watering hole and spends $10 on 2 beers is
:>> he getting ripped off to such that the government needs to step in?

:>The government already regulates liquor sale quite heavily. So yes,
:>it does step in.

And requires the bar to lower prices???

:>> Stick to one topic at a time. Credit cards are a whole 'nother topic
:>> and involve banks. Pay day loans are not in that industry. 

:>This is usenet, topics have a tendency to drift, and even change
:>completely. And credit cards are absolutely connected.

:>> Well no...loaning it out to people who cannot pay it back hurts, but
:>> having it available for those who can repay, or charging interest that
:>> covers the bad debts that always show up is really ok and what makes
:>> the world go around.

:>Average consumer will still have ways of getting money. Why is that
:>so difficult to understand? They're not worse off at all. And the ones
:>that really do not have any other means are the ones that can not afford
:>a pay day loan to begin with. So they're better off.

What about those in a crunch who will lose more money if they cannot get
the
loan yet cannot get money from other places?

:>Why is it so bad that the consumer is better off? What need is there
:>to take advantage of, and even sup****t taking advantage of people
:>who are worse off, or who aren't as mathematically savvy as others? Not
:>everybody is good with math and finances. But what makes a society
:>better is when it takes care of the ones who need help. Whether by
:>giving out money to the needy, passing legislation to prevent defrauding
:>them, or any other methods at their disposal.

If you wish to make the argument that these places do not disclose the
cost of
funds, make that argument and we can examine it.

:>> What gave was that Little Sally didn't see the doctor and the strep
:>> turned into rheumatic fever, or the horse died or the seed corn never
:>> got planted or they all went hungry.

:>This is a typical payday loan customer? What kind of paychecks do
:>farmers get, which they could put as a collateral?

They don't put a "paycheck" as collateral. They give a post-dated check.

-- 
Binyamin Dissen <bdissen@[EMAIL PROTECTED]
>
http://www.dissensoftware.com

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