Big banks provide cash for payday loans

  • Article by: JENNIFER BJORHUS , Star Tribune
  • Updated: May 17, 2013 - 11:42 PM

Commercial banks say that they’re just doing their job.

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chlyn001May. 17, 1311:04 PM

I recall years ago any interest over 8% annual interest was illegal, and they had a name for it too: USURY. Now I guess anything goes when it comes to exploiting the poor. Wouldn't it be great if banks made small loans like they used to? They could call it Community Outreach and Education, and maybe it would improve a bank's image. And wouldn't it be great if our legislature capped rates at 25%, or somewhere near that? Used to be only gangster loan sharks did business at 50, 100 or 350%. Do these "modern" loan sharks still break your arms or legs if you're a slow payer? Or just destroy your credit forever?

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orpheus90May. 17, 1311:06 PM

Who needs a loan shark when you've got a Payday? Let's call this what it is: bald-faced racketeering that preys on the poorest. And it's abysmal. Outlaw them.

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ziggymMay. 17, 1311:10 PM

They're helping to keep the poor, poor. Absolutely terrible, preying on those who can least afford it.

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pondsongMay. 17, 1311:12 PM

time to switch to a credit union

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jcinmnMay. 18, 1312:00 AM

Big banks have the perfect situation. They charge a fee for having a checking account (unless you have a minimum balance in the hundreds of dollars) and they have a minimum balance required for a savings account. They charge a fee to cash a payroll check unless your employer has an account with them and they refuse to do business in certain parts of town. They hire hit men, aka Payday stores to do business in those parts of town and make tons of profit in doing so. If the mafia did this there would be G Men at their door.

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jcinmnMay. 18, 1312:02 AM

Are you getting the hint as to why big business doesn't want a hike in the minimum wage? That would cut into their loan sharking business.

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rayk1800May. 18, 13 2:43 AM

I'm pretty disappointed now with our elected officials after reading about the taxes to be implemented, not raising the minimum wage, not passing the bond bill, and now the payday loans. I think there needs to a wholesale change in the elected officials and some common sense a requirement.

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elind56May. 18, 13 9:19 AM

You mean to tell me that people of lesser means have access to credit to help get them over an unexpected financial bump in the road? Outrageous! Better that they just let the monstrous late fees and huge overdraft charges pile up month after month while watching their credit rating go into the toilet.

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camb24May. 18, 13 9:36 AM

I have a solution......DONT GET A PAYDAY LOAN! Nobobdy is forcing people to spend more than they take in.....its called budgeting!

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conniemercerMay. 18, 13 9:44 AM

Where else do businesses get money for operating expenses?

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