Stephen Winslow is a regular contributor to The Augusta Free Press. He recently wrote an article praising the paper for shedding light on the payday loan industry.

Taking advocates of payday loans to ask, Mr. Winslow is probably a supporter of the December closing of a handful of payday advance operations in Georgia. Here are excerpts of what he had to say:

Unfortunately, there are those that are uneducated and continue to buy the popcorn that the industry continues to sell. Tom Lehman, for example, acts as though people involved in the cycle of predatory loans have a choice on whether they take a loan or not. He states that the household should be able to decide how many loans they wish to take.

I would agree if people were able to pay off the loans over a peroid of time that was adaptable to the individual’s financial state. However, thanks to lobbyists and those that do not understand the dynamics involved in this predatory practice, people are forced to roll the loans over because of unfair repay deadlines and an APR of 377 percent or so.

(Editor’s note: interest rates on payday loans vary and states have been introducing regulations to cap them).

Next, Howard Karger has the audacity to suggest that taking a payday predatory loan is like a middle-class family putting something on a credit card. If I put something on my credit card, I have a minimum payment I must make, and the time it takes me to pay the card back can be extensive as long as I make that minimum payment. If I wish to pay it back early, I should; however, if I need to take my time, I can. That option does not exist, never has, and greed will never allow the payday predatory industry to ever offer it.

Do you really think that people, if they had a payback option that suited their financial situation, would continue to take these loans? Do people like Mr. Lehman and Mr. Karger believe that this is some type of a hobby for families?

Of course not, and payday preditors know it. The industry cannot survive without the repeat customer, period. The industry knows this as well, and that is why they prescribe to the rules that currently exist, because they realize that they themselves create their own market.

Bainbridge, Georgia — Just recently five payday loan companies have voluntarily shut down in Bainbridge. Two more payday loan companies, "Money Now" and "Fast Cash Title Pawn" are on trial. If found guilty, this will add two more companies to the closing list.

District Attorney, Joe Mulholland, is prosecuting the two companies for violating the payday lending act with their interest "rollover."

The payday lending act, established in July 2004, made it illegal to charge more than 16% interest for any faxless payday loans under the amount of $3,000.

Mulholland said "Money Now" and "Fast Cash Title Pawn" tried getting around that law by "giving a rebate, or an option, or they're giving a gift certificate, when, in fact, there's no gift to be got."

A decision by the judge is expected to make by March.

Atlanta, GA — Lawmakers thought it was the end of payday lending in Georgia when they voted last year to outlaw payday advances. Any companies marketing the short-term, high-interest loans would be hit with hefty fines and up to 20 years in prison. The law was even upheld in the federal appeals court in June.

Since then, however, some wily lenders may have found brash new ways to flout the legislation, said lawyer and former Gov. Roy Barnes. In the latest trend, lenders ask customers to put up a household item - like a microwave, toasters or home electronics - before they can get a cash advance. The item is then leased back to them, but not before a consumer writes a check for the loan amount plus a finance charge, according to the complaint. If the loan isn’t repaid when it is due, the borrower is forced to negotiate another advance, buy an extension or risk bouncing the check.

Barnes filed a lawsuit last week in Clayton County Superior Court challenging the lenders’ new practice. “This is really nothing more than a new name for an old game,” he said.

His client, student Melony Reid, put up her computer and printer for a $500 loan from the defendant, USA Payday, which owns a string of lenders in the state. After extending her payments several weeks, she owed $675 in finance charges plus the principal loan amount.

Reid’s lawsuit is the latest in a flurry of litigation attorneys have filed against lenders since the law was enacted in May 2004. Barnes’ firm filed a rash of lawsuits last August accusing 60 businesses and individuals of violating usury and racketeering laws.

Augusta, Georgia — Jerry Ayles, affiliated with Trihouse Payday Loans, offers his biased view on payday loans. The following views are that of Jerry Ayles, not the Payday Loan Times:

“One cannot deny the demand for the payday-loan product. Currently, it is estimated the payday-loan industry is $12-$14 billion dollars. Stephens Research estimates it will be a $50-$60 billion dollar industry in five years.”

“Why? Because the consumer wants and needs the product. Although you may not relate to this scenario, there are millions of people who need a quick and easy $300 on Tuesday to fix the car in order to get to work through Friday. And there are a multitude of other, legitimate reasons for these small, unsecured loans. When I worked behind the counter of my first store, I cannot tell you how many hundreds of times I received a phone call from a parent requesting I loan their son or daughter $300. Typically they asked me to make the loan because they knew, based on past experience, their family member would never pay them back.”

“The reality is, the folks making use of our product are well aware of the costs. We do not hide the fact that a $300 payday advance for two weeks will typically cost you $45. We use a multitude of disclosure forms with very large print and requirements for their initials to acknowledge their understanding of the terms. All they have to do is fix their car and pay us back.”

“Of course, like the credit-card industry, the banking industry, the financial industry and more, we do have some unscrupulous operators. With time, they will fail. Those of us who treat our customers with dignity and respect will prevail. And demand for our product by the consumer will continue to grow dramatically.”