Tuesday, August 15, 2006

NOTE: Below is a letter we received, via e-mail, from an Oregon resident and small business proprietor with strong opinions about the payday loan industry in his state. If you would like to have your opinions heard, please use the Contact Us form and let us know what's on your mind. The democratic nature of the Payday Loan Times makes us inclined to share all views, so nothing is off the table.

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I've been reading your site and a ton of local papers lately about all the commotion going on regarding payday loans here in Oregon. I ask that you keep my name and my businesses [sic] name out of this because I know I will have activists breathing down by neck if this gets out. But as an owner of a payday loan store I have to voice my opinion.

I am frankly sick of being labeled a loan shark by all of these groups that are seeking to end payday lending in numberous [sic] Oregon communities, mine included. I run an honest business that, believe it or not, helps people. Why do you think the industry grows each year. Because it fills a niche and consumers want it. It's the way the world works, and the last time I checked, we were living in a free society! Imagine that!

People who call payday loan company's [sic] rates predatory do not know the facts. Yes they are high. Yes you can get end up with more debt if you don't pay off no fax payday loans on time. But most people do pay on time, and the fact that some people don't make the rates necessary from a business standpoint!

I make a decent living for myself but I am hardly raking in the riches. I will not waste time by breaking down the numbers for you but let's just say my overhead is massive due to the risk of every unsecured personal loan my store gives out. Think about it — yes I make money off interest, but what do I get if someone doesn't pay it back? Nothing!

This is unsecured debt, and while most customers of mine handle their loans responsibly, it's the people who don't that drive the risk (and rates) up for all.

I have no doubt that the intentions of the activists and politicians who want to regualte [sic] the payday advance business are good. But frankly if you ask me I believe in our constitution and I believe this is not their place. In a free society people make their own decisions, and the free market dictates what businesses succeed and which fail.

With ordinances against cash loans you not only strip people of a viable option but violate basic economic principles of the United States of America. Thank you for letting me voice my opinion.

Sincerely,

James

This entry was posted on Tuesday, August 15th, 2006 at 7:47 am and is filed under Oregon, Letters to the Editor.