KentuckyVotes.org

2008 House Bill 500 (Increase regulation of check cashers)

[Comments on this legislation] [Text and Analysis] [Add to Watch List]
[Previous] [Next]

  • Introduced by Rep. Johnny Bell on February 11, 2008, to increase regulation and reduce permissible fees charged by check cashing companies.
    • Referred to the House Banking and Insurance Committee on February 12, 2008.
    • Reported in the House on March 13, 2008, favorably, 1st reading, to Calendar.
    • Substitute offered in the House on March 13, 2008, to reduce the maximum service fees from $15 per $100 in proceeds to $13 per $100 in proceeds and reduce the time to report illegal activity from 5 days to 2 days. The substitute creates language anticipating the establishment of a statewide database. The substitute creates a new subsection to prohibit any licensee from entering into a new deferred deposit transaction with a customer within 24 hours of any licensee closing a deferred deposit transaction with that customer.
    • The substitute passed in the House by voice vote on March 20, 2008.
    • Amendment offered by Rep. Johnny Bell on March 13, 2008, to delete "electronic instrument" from the definition of "Payment instrument".
    • Amendment offered by Rep. Johnny Bell on March 19, 2008, to reinstate the current fee of $15 per $100 borrowed and substitute "the previous business day" for the 24 hour "cooling-off" period throughout the bill. The amendment also restricts the number of deferred deposit transactions that a customer may have at one time, with a total maximum of $500.
    • The amendment passed in the House by voice vote on March 20, 2008.
    • Amendment offered by Rep. Ken Upchurch on March 19, 2008, to delete all language in the bill and insert a provision to require the Interim Joint Committee on banking and Insurance to study the business of deferred deposit transactions and the impact of these transactions on the citizens of the Commonwealth and require a report to the Legislative Research Commission no later than December 1, 2008.
    • The amendment failed in the House by voice vote on March 20, 2008.
  • Passed in the House (56 to 35) on March 20, 2008. [Vote Details and Comments]
  • Received in the Senate on March 21, 2008.
    • Referred to the Senate Appropriations and Revenue Committee on March 26, 2008.

Line

Comments

Introduced by Rep. Johnny Bell on February 11, 2008. Passed in the House (56 to 35) on March 20, 2008. New Comment

1) small business owner [by Anonymous Citizen on March 28, 2008]
Why do you have the right to tell people how to spend their money or how often they can borrow it? Thats the customer's right and you are trying to take it away. We are here to help people not hurt them or trap them.Our customers are intelligant and can make their own decisions. We don't pursue poor people. I own a deferred check cashing store and from what I have learned is the following: You do nothing to protect the owners of this business. We have no legal recourse to collect the money. You make the companies hang a sign that even states this. Maybe you should look at Laws to protect small business owners, trying to put food on the table, that pay taxes to the state, and let the people decide if they want to do business with a company.
Reply New Comment

Line

2) Peoples Cash Advance [by Anonymous Citizen on March 29, 2008]
Finally!!!!!
Reply New Comment

Line

3) just say no to hb500 [by kygirl2003 on March 27, 2008]
if it were not for payday loans i honestly dont know what i would do they put food on my table,helps me get my medication,to me payday loans are like a life line to a drowning person going down for the trird time. it is not fair for you guys to take away what help we do have i can truthfully sasy payday loans have saved my life why are you guys saying these things and trying to shut our lifeline down i say walk a mile in our shoes then see what you feel this ia america i am supposed to be able to make my own choices but now you are trying to take that away i pray god will open the eyes of the blind and let them see we need the payday loans everyone is not blessed with money and have to fight just to get the things really needed like food and shelter health care i am just thankful there is help payday loans i thank you
Reply New Comment

Line

4) Don't understand [by Anonymous Citizen on March 21, 2008]
I have worked for a cash advance for a year and a half and I have to say that we do help a lot of people in need. We also work with our customers try to get out of it. But we have no control over how they spend their money and neither should you.I myself have used this services. I am really offended when people say that only the poor and stupid use it because I am neither. I also didn't understand how you want to destroy this line of business and then approve a bill for gambling in Kentucky. How is that going to help the people. All that's going to do is put money in the states pocket and don't they get enough already?
Reply New Comment

Line

5) what happen to our rights as people [by freedom gone on March 21, 2008]
WE DO NOT HAVE A SAY IN WHAT WE WANT TO DO ANYMORE THE GOVERMENT IS SLOW TAKING OUR RIGHTS AWAY FROM US . I'M SURE THAT THERE OUR OTHERS WHO FEEL THE SAME WAY AS I DO . AS FOR THE BILL 500 PEOPLE KNOW WHAT THE ARE GETTING INTO WHEN THE GO INTO THE PAYDAY LOAN PLACE , BUT IT IS THERE RIGHT TO DO AS THE WANT. YOU SAY IT IS A TRAP , I'M SURE SOME GET IN OVER THERE HEADS , BUT THEY KNOW WHAT THERE ARE DOING , PEOPLE HAVE CAME IN AND PAYED OFF WITH THERE TAXES AND IN 2 WEEKS THERE GO BACK , SO YES THEY KNOW WHAT THEY ARE DOING . I DONT AGREE THAT THE GOVERMENT SHOULD TAKE AWAY RIGHTS OF PEOPLE . THEY KNOW THE COST UP FRONT .
Reply New Comment

Line

6) What rights are being taking away? [by Anonymous Citizen on March 21, 2008]
I really do not understand the anguish over the bill. It keeps the fee at $15 per $100 which is the current law; it keeps the maximum number of loans at 2 which is current law; and it keeps the maximum dollar amount that a person can borrom at $500, which is current law. How is your freedom to be charged 400% interest being taken away?
Reply New Comment

Line

7) Look at history [by Anonymous Citizen on March 20, 2008]

Many of you won't remember, but Kentucky had bail bondsmen until the 1970's. The Kentucky legislature outlawed commercial bail bondsmen because they charged usurious interest rates to people who were having a tough time. Not to mention the debt enforcement techniques. I'm sure it cost a few jobs when they got rid of the bondsmen, but is served a greater good for our commonwealth by stopping the exploitation of the poor.
Reply New Comment

Line

8) manager [by Anonymous Citizen on March 20, 2008]
I guess you must be God and above all of us little people. If it wasn't for the little people to whom you think don't have enough common sense to think for ourselves,who would serve you at resturants,scan your groceries,etc then you wouldn't be able to live in what you make it sound like your high society.Just to let you know I am an employee of Bluegrass Check Advance and we have customers from all walks of life not just what you call uneducated(such as attorneys,college professors,nurses etc. I don't feel by any means that any of our customers are ignorant, they just run into a bind and need a little help from time to time and that is why we are here. I really disagree that a lobbiest wrote the statement to which you are commenting about,it sounds like a customer of ours.
Reply New Comment

Line

9) Hold the phone [by Anonymous Citizen on April 4, 2008]
I really DOUBT that a lawyer or nurse for that matter would NEED a check cashing business,
Reply New Comment

Line

10) manager [by Anonymous Citizen on April 30, 2008]
Well I have no reason to lie about who uses our services here at BCA. People from all walks of life need a little help now and then. How do you know that with the recession that you won't need our help one day. I'm sure these gas prices are causing alot of people hardship but I dont see people trying to shut down the gas station
Reply New Comment

Line

11) manager [by Anonymous Citizen on March 19, 2008]
I Have worked at a Payday Advance Office for over ten years. We have helped alot of people over the years. Some say they couldn't make it without us. You can't go to a bank and get a small loan. We don't just have SSI people coming here. We have lots of people who work at hospitals, banks, court houses, etc. We do not prey on poor people. I don't understand how banks can charge up to $35.00 for every check insufficient and its terribe how much credit card companies can charge people. I really feel its no ones business if people use our service. No one tells people how to use their credit cards or when they can. Let us continue to help people in our state.
Reply New Comment

Line

12) Fee Back to $15 [by Anonymous Citizen on March 20, 2008]
Looks like the sponsor of the bill has reached a compromise with the industry and placed the fee back at $15 per $100 for a payday loan. I guess payday lenders will not go out of business now.
Reply New Comment

Line

13) Too bad [by Anonymous Citizen on March 20, 2008]
If a person keeps rolling over $500 every two weeks, that means they are paying $1,950 a year to borrow $500. What most people don't understand is that they are only borrowing the $500 one time. Once they roll it over, they are just carrying the same old debt with no new purchasing power. It is really sad. If a person needs to borrow a little extra 2 or 3 times a year, there may be an argument. But there ought to be at least 2 pay periods between loans if there is any hope of breaking the cycle.
Reply New Comment

Line

14) Interesting article [by Anonymous Citizen on March 19, 2008]
It seems anything above a 36% interest rate is designed to keep people in the debt cycle. how does 460% look now?

Check out this article from http://www.responsiblelending.org/issues/payday/reports/springing-the-debt-trap.html

36% Cap Springs the Trap
Measures short of an interest rate cap fail to fix payday lending problem

The debt trap of payday lending persists even in states that have put restrictions on payday loans while exempting them from interest rate caps.

In "Springing the Debt Trap," CRL finds that high numbers of borrowers are still caught in payday loans for long periods of time, even in states that have passed certain measures intended to stop this cycle. No measure short of an interest rate cap has effectively addressed the repeat borrowing that advocates, policymakers, and the industry itself agree is the central problem with payday lending.

Findings:

90 percent of payday lending business is still generated by trapped borrowers with five or more loans, even in states that have attempted reform;
60 percent of payday loans go to borrowers with 12 or more transactions per year;
24 percent of loans go to borrowers with 21 or more transactions per year;
One of seven Colorado borrowers have been in payday debt every day of the past six months;
Nearly 90 percent of repeat payday loans are made shortly after a previous loan was paid off.
None of these measures have stopped payday loan flipping in the states:

Renewal bans/cooling-off periods;
Limits on number of loans outstanding at any one time;
Payment plans;
Loan amount caps based ona borrower's income;
Databases which enforce ineffective provisions;
Regulations that narrowly target payday loans.
Only enforcement of a comprehensive interest rate cap at or around 36 percent for small loans has solved the debt trap problem.

A dozen states with this cap, plus the District of Columbia, will realize a savings of $1.5 billion per year in abusive payday fees.


Reply New Comment

Line

15) JUST ANOTHER STRESS [by Anonymous Citizen on April 7, 2008]
I have used payday loans myself and find i borrow then pay to turn around and borrow again. I have actually had one come to my place of employment when I was late. It was easy in, but hard out. Like a loan shark or drug shark or drug dealer.
Reply New Comment

Line

16) manager [by Anonymous Citizen on March 18, 2008]
how i choose to raise my children is none of your business. My point is payday advances do come in handy when needed and this is what this subject is about not my morals or whether i want to tell my kids no or not. so stay on the point and quit judging people on their parental skills
Reply New Comment

Line

17) VOTE NO [by Anonymous Citizen on March 17, 2008]
As customers of short term credit lending agencies we are aware that the government is trying to pass a Bill to stop payday loan companies from operating in Kentucky. This Bill will not only take away my right to access short term credit, but it will put hundreds of businesses out of commission and thousands of people (mostly women) out of jobs. I am fully aware of what my options are in terms of financing and I choose to do my business with payday loan companies for many reasons. My fees are set in stone and are not subjected to change and I am fully aware of what those fees are. Life experiences come up unexpectedly and this service has provided me with a way to pay for these small emergencies. With the cost of living dramatically rising within our economy, times are going to get tough and I like having the freedom and the availability that short term lending agencies provide me with. Knowing there is a place I can receive help fast and without a credit check provides me with piece of mind. I do not feel that my financial state is being abused by these lending agencies, as the state already regulates the amount and the number of transactions I can have at one time. The lending service you are wanting to put out of business saves me money when I am in a bind; it allows me to purchase things, that I have not planed for, like: school supplies for my children, medicine, gas, groceries, an unexpected costly light or water bill, a flat tires, car repairs, broken appliance replacement, deposits for utilities, moving expenses, unexpected child care, medical bills, pet emergencies and other unexpected things. Life isn’t planned and it never will be and there are times in which I will need help, so without these agencies I would have no where to turn. Please reconsider your proposal on this Bill and allow me, the consumer, to choose for myself. In conclusion, I am asking you to Vote NO on HB 500 because it will take away my option to access short term credit. I want to retain the right to make my own decisions concerning payday loans.


Reply New Comment

Line

18) They have hired a lobbyist [by Anonymous Citizen on March 18, 2008]
Based on all the prior posts supporting pay day lenders, this post must have been written by a lobbyist. It was much too literate to have been written by anybody who actually uses pay day lenders or who has previously written to oppose this bill.

Come on - a lack of education and understanding of finances is what gets people stuck in the pay day lender cycle. If they understood what a bad deal it was financially, they would not use the service.

I don’t agree with most laws which are designed to protect people from themselves. But in this case, pay day lenders are such a scourge on the poor and uneducated, something must be done. It is a societal problem. I nearly gag to say this, but I would even support more welfare benefits to keep families away from pay day lenders who are having a hard time putting food on the table. The people who would simply go to a pay day lender for a non-essential purchase need to be cut off altogether, for their own good.

The poverty cycles caused by pay day lenders leave whole families with less money to put on the table over the course of a year. Two weeks of tightening the belt would break this cycle for most people. Obviously, the growth in pay day lending demonstrates that some action must be taken to save people from their own short sightedness. Otherwise, we are only going to grow a larger welfare class by allowing the pay day lenders to continue to deplete the working poor of their cash before it is even earned.
Reply New Comment

Line

19) Education Has nothing to do with it!! [by Anonymous Citizen on March 25, 2008]
Education has nothing to do with it! I am a manager of a pay day loan company, and I have customers from all walks of life. We have customers who work at McDonalds, who are real-estate agents, teachers, nurses, managers, factory workers, most of whom all make more money than I do. Education has nothing to do with it. And we do not go after the poor, actually we do not go after anyone they come to us for help, and we help them.
Reply New Comment

Line

20) Education is everything [by Anonymous Citizen on March 25, 2008]
There is an old joke: “The lottery is a tax on the math impaired.” That is to say, if people understood the extremely low odds of winning the lottery, they wouldn’t waste their money on it. Of course there is a big difference between playing a $1 or $2 every once in awhile for fun and blowing a bunch of money on the lottery week in and week out.

The same could be said about pay day lending. If a person used it once or twice a year, it might help them out of a jam. But if they roll the same loan over week after week, well then, they certainly are “math impaired”.
Reply New Comment

Line

21) Gagging on hired a lobyist [by Anonymous Citizen on March 20, 2008]
You assume because a person does a payday loan they are uneducated or poor. Who are you to make that judgment? Do you work for a payday loan company? NO...if you did you would realize how wrong you are when you ASSUME their customers are uneducated and/or poor. Many of the customers are well educated with high paying jobs. If you had done your homework first you might have known this. It is easy to speak when you are uneducated and don't have a clue! Do you honestly think most of their customers are on welfare? Do you realize you probably cannot do a payday loan if you are on welfare? You have to have a job to do a loan, even at a payday loan company. You should be ashamed of yourself for being so judgmental. It seems very easy for you to lump people into stereotypical groups. There are so many other things in this fine State that need taken care of and all our lawmakers can think about are things like payday loans...What about education. What about the number of people in this fine State that cannot afford insurance...whose children go without much needed medical care because they cannot afford insurance and make too much to receive a medical card. How about fixing that problem. What about the astronomical cost of car insurance...so many other things that need fixed...so few lawmakers that actually care.
Reply New Comment

Line

22) manager [by Anonymous Citizen on March 17, 2008]
you know there are other states that you can reside in which do not have payday loan companies so why don't you think about moving there if they bother you so much !
Reply New Comment

Line

23) manager [by Anonymous Citizen on March 17, 2008]
no! no! no! i guess your one of those people who has never had their child do without because they couldn't come up with money at the last minute to enroll your child in a sport or wonder after the bills are paid if you were going to have enough money to give your child a descent christmas. I am a single mom with 2 children and recieve a $10 child support check a month(I am serious $10) if it hadnt been for payday loans I would not have been able to go that extra mile for my children.It was better to me to pay back $15 on a hundred rather than bounce checks at the bank that would have cost me $27 per check. I am a good mother and want the best for my children and thanks to payday advances when i need that extra money i can get it. apparently you have never had to look at a child and tell them no i can't afford it this week.
Reply New Comment

Line

24) Indulgement mother, shame [by Anonymous Citizen on March 18, 2008]
To the mother who can’t say ‘no’ to her child. If you were honest with your children and put off buying an indulgence until next week, you would be teaching them fiscal responsibility. Do you think more affluent parents buy everything their children want? No, in most cases, they just budget and plan better. Good parents tell their children 'no' when necessary. That would help break the cycle of poverty and dependence on credit cards and loan sharks for funding unnecessary discretionary purchases. Teach your children to live within their means, not that they are entitled to instant gratification.
Reply New Comment

Line

25) manager [by Anonymous Citizen on March 17, 2008]
i have been in the payday adv business for a longtime also and our company does not hound families of a deceased customer that sounds like a company issue not a payday lender issue and as far as ssi customers you help them when in need and then you also help them cut it down a little bit every month to help them get out of it. While I'm on the subject if your ashamed of your job then simply get another one and quit your whining !!
Reply New Comment

Line

26) oh no. [by Anonymous Citizen on March 15, 2008]
please vote no for House Bill 500.those check cashing co. put alot of food on tables and diapers on bottoms.not to mention light bills,water bills and daily living expenses. not everyone is making 75 to$85.00 an hr.but bills do have to be paid.if u need$ 200.00 for a light bill and u do not have good credit go to cash express cause the bank won't talk to u.please vote no...........
Reply New Comment

Line

27) This is crazy [by Anonymous Citizen on March 15, 2008]
I am sorry but if this bill does pass a lot of people that work at these businesses will be out of a job. I will be out of a job. This is going to make it harder for us to make any money. Why don't they change the way the banks run and stuff like that. Or lower the prices of groceries and gas. No, they just want to get check cashing/payday loan places out of Kentucky. This is all this bill is about. Making it harder for them to earn money and get rid of them. It is not our fault people cannot manage their money and get in over their heads at these places. We monitor it the best way possible by using teletrack. Maybe if they required every place to use it instead of me having to call every check cashing place within a 50 mile radius it would help. And do they not see that this is not only going to hurt these businesses it is going to hurt the people that use them. Having to wait. I am sorry some people cannot wait even 24 hours sometimes to rewrite. They have bills and other stuff to deal with. Right there is going to cause a lot of people to stiff these places. Cause they can't wait. This is just going to make it harder on everyone. America is already in a downfall, why put more people out of work and hurt these customers? Not everyone can go to the banks and finance companies. Open your eyes and see what you are doing.
Reply New Comment

Line

28) Contact your local State REpresentative [by Anonymous Citizen on March 14, 2008]
The following is a copy of an e-mail that I sent to my local state representative yesterday, I urge everyone whose job depends on this bill not becoming law to do the same....

The passing of HB 500

has me very concerned. My question is this…do our lawmakers in Frankfort understand the magnitude of this proposed legislation and the consequences

it will have on small “ mom & pop” institutions such as ours? It will force many non-national payday lending chains out of business. Resulting in the loss of

jobs for hundreds of Kentuckians. I just last month was able to attain health coverage through my employer. This move by the house will force me and many other Kentuckians like myself into unemployment and uninsured. Forcing our industry to allow each consumer a 30 day period to re-pay the advance will cut our income substantially, so much so that my employer has already stated that our small company could in no way generate enough income to cover the operational expenses of our 3 store locations. We also have locations in Russell Springs and Liberty, KY. The reduction in the service fee allowed from $15.00 per $100.00 to $12.00 per hundred will

hasten our failure. The consumers whom we service depend on our industry in local communities for resolving their financial needs in time of crisis. Finance company’ won’t loan someone in need as little as $20.00 like our company does. These type of institutions also require credit checks, which most of our clients will automatically not qualify as a result. My company takes chances on people and provides them a way out when their car breaks down, out-of-town family member passes away and they don’t have gas money to be with there family in a time of crisis, or they get an enormous electric bill during the winter months and there budget does not allow them to cover the extra expense. I’ve had mother’s tell me that they would be unable to buy their children school supplies or school clothes when the school year started if it were for places like us. The really frustrating thing is the fact that the banks are allowed to charged outrageous and unlimited check bounce fees to there customers. For instance let’s say a customer writes a check to 3 different retail locations one for $40.00 one for $28.00 and one for $32.00. They know and understand that they will be charged anywhere from $25.00 to as much as $32.00 for each check paid by there bank, but most banks offer them a “ No Bounce Protection” . Which gives them the safety net of knowing these checks will be paid and not returned to the Payee. This customer will absorb $75.00 to $96.00 for these 3 transactions, however proceed because they feel they have no other choice, they have to buy gas to get to work, feed their kids, or buy medication for a sick child. I have seen these situations time and time again. Then they realize that businesses such as ours will loan them the $100.00 that they need and charge them $15.00 and allow them 2 weeks to re-pay this amount. Whereas the bank charges their account these fees as soon as their check hits the bank. No which one do the legislators think is the best solution? Allow the banking industry to charge $75.00-96.00 for those 3 transactions which equaled $100.00 or allow us to charge them $15.00 and give them 2 weeks to repay it? I implore of you as our state representative to bring my side of this dilemma to light. If this becomes law many, many Kentuckians will lose there jobs. With the economy in the down slide that it is currently in this only exacerbates the situation for families in Kentucky just like mine. I am a single mother who receives no child support and can not survive on unemployment benefits. Jobs opportunities in this area are already scarce in this area. I appreciate your time in reading this email, and hope that you will do everything within your power to stand up for working families in Kentucky just like me.


Reply New Comment

Line

29) To Mr Legislator aka wonderful himself [by Anonymous Citizen on March 13, 2008]
I have read the emails from all the people stating that the customers who use payday loans need to learn how to handle their money better. Well I hate to burst your bubble but not everyone can be perfect in todays world. I dont know about you, but I have days that the kids come home and tell me that they need something for school by the next day and I have no money....
And then we have the wonderful gas prices, dont you think Mr Legislator that you should take our hard earned tax dollars and do something about the gas prices, and maybe some of the customers wouldnt have to be customers anymore! And while I am on the tax issue, what is the great state of KY gonna do when all the employees who work for these companys no longer have a job...hmmmm this means that all those people who sit home and collect welfare wont have their tax dollars anymore....Mr Legislator does that mean your gonna be paying for their welfare check now & all the employees without jobs???
Reply New Comment

Line

30) Bluegrass Check Advance Employee [by Anonymous Citizen on March 17, 2008]
AMEN!!!!!!! Thank You... You said it all honey.
Reply New Comment

Line

31) HB500 [by Anonymous Citizen on March 13, 2008]
This bill basically says: you can't eat as many donuts as you want, you can't go to different banks and get as many loans as you want, and you can't go to a regulated financial business, regulated by Division of Financial Securities and ask for multiple number of small loans, that is over 2.

Is this believable? Anyway, I oppose this legislation and feel there is a privacy issue also.
Reply New Comment

Line

32) clever girl [by Anonymous Citizen on March 13, 2008]
I am ashamed to say that I have worked in the payday advance business and I can tell you the people who are on social security and SSI will never get out of these loans. Even when they die their estate will be hounded.
Reply New Comment

Line

33) CLEVER GIRL [by Anonymous Citizen on March 19, 2008]
I WOULD LIKE TO KNOW THE NAME OF THE PLACE YOU WORKED, BECAUSE WHERE I WORK WE WORK WITH OUR CUSTOMERS ON GETTING OUT OF IT. JUST WANDERING IF YOU WERE ASHAMED WHEN YOU WERE SPENDING THE MONEY YOU MADE FROM WORKING AT THE CHECK CASH BUSINESS.
Reply New Comment

Line

34) NOT SO [by Anonymous Citizen on March 17, 2008]
If someone dies and they have a loan out with one of these companies it is dropped!! We DO NOT hound people, nor do we go after estates of the dead. Please refrain from making comments if you do not have accurate information. This Bill will put thousands of women out of work and thousands of people without a way of getting help for small things like: medical emergencies, pet emergencies, flat tires, gas, unexpected travel and so on. Businesses in which people rely on for their income are going to be shut down and it will put a HUGE strain on our economy.
Reply New Comment

Line

35) Clever Girl You are Really Dumb [by mgrcashadv on March 14, 2008]
I work for a cash advance as a manager, and I have no idea what kind of place you worked for but before you slander all cash advance centers you need to know the facts. We work with our SS and SSI customers to help them write down each month as much as they can afford, and we help our customers to break the cycle. And for your information if a customer that owes us money were to die, we write that off and we never try to collect it again. So get your facts straight. I am sorry that you chose to work for such a pitiful company and I hope that you were not a part of that kind of scam for long, because if so that tells everyone a lot about what kind of person you are.
Reply New Comment

Line

36) In Reply of Clever Girl [by Kentucky Employee on March 13, 2008]
I work for the check cashing company now, and NO WE ABSOLUTELY CANNOT GO AFTER THEIR PROPERTY IF AND WHEN THEY DIE! THEIR ESTATE (as you called it) CANNOT BE TOUCHED! You had better search your facts out better! Kentucky Employee
Reply New Comment

Line

37) Payday Loans Help People In Need [by Anonymous Citizen on March 13, 2008]
I work for Cash Express, LLC. We are not loan sharks. We do not break people's legs. We do not prey on the poor or uneducated. We are here to provide a much needed service. Banks will not loan small amounts. We do have to follow laws. We are regularly audited by the state. Yes, we do loan people money based on their paycheck. We do require that you have a job and an open bank account. For those who use this service responsibly it helps them when they need help. We do not prey on the poor. We have customers from all walks of life...rich and poor. We already have regulations and limits on what we are able to do. People get into trouble when they lie and tell us they do not have checks out with any other payday lenders. If you pick one company and stick with them, instead of going to several different ones, you should never have a problem with payday loans. I am deeply offended at being compared to a drug dealer or reading that someone thinks if we lose our jobs we would be great dealers. We do everything we can to help our customers. We provide a service that apparently a lot of people in the state of Kentucky need and want. People come to us because they Choose to walk through our door. Perhaps if the people who sponsored this bill spent a little time with us, listening to our customers, who are grateful we were there to help them, perhaps they would have a better understanding of what we do and why people need our services in Kentucky.
Reply New Comment

Line

38) GET THE FACTS [by checkgirl on March 12, 2008]
I have worked in the payday loan business for over five years. People are so quick to judge! My company does very little advertising-yes, we are in the phone book, but we don't go out and DRAG people in our stores. We figure if people need our services, they will seek us out. Those who make the snide comments about payday lenders "preying on the poor, elderly, etc" must have gotten fired by a payday loan company or have been a customer at one and didn't repay their loan and are mad because the company tried to get their money owed to them. I don't get it!
A lot of people come to us because they have miscalculated their checkbook and they know they will have several checks coming thru but no money in the account to cover them. They can come into one of our stores, get the money they need in about 15 or 20 minutes, and be on their way to the bank to cover the checks coming thru. That takes a lot of worry off their minds. Also, speaking of banks, if you payday lender haters want to dog somebody, how about $34 per returned check fee that the bank charges? PLUS $1 a day continous overdraft charge.
Also, at my company, we will tell people if they want to get out of the cycle, the best thing to do, if they cannot pay the loan off and walk away, is to go down a notch or two each time they come in and they will soon have it paid off.
Where people get messed up using these places is they go to 2 or 3 different places and lie and say they don't have anymore checks out. We don't want people to get in over their head and if they don't use their own good judgement (as with any financial decision) it is not our fault. People default on loans at banks & finance companies & credit cards all the time. Banks & such at least have a recourse on a bad debt. Check cashers do not. We cannot repo anyones property or put them in jail--they can. As far as the comment about these places getting "filthy rich" HA HA-- I guess that's why I have a big collection of checks marked NSF or CLOSED ACCOUNT. You all need to get all the facts before you start crucifying the payday lenders. We just provide a service like any other business. Most businesses ARE in business to make money. If money was free then I wouldn't have to get up and go to work everday to make it.
Thanks for listening! I feel better now!

Reply New Comment

Line

39) Payday Loans [by Kentucky Employee on March 12, 2008]
How many more jobs are going to be taken away from the employees of Kentucky? I am an employee of one of these companies and just like you, I need my job also! You may think that you are doing a justice to help, but you are in all actuality hurting us. I don't know about some of you but, I only make 5.85 an hour, hardly a way to get rich by any means, but, I love my job! I have bills to pay too. It is the responsibility of every person who comes into one of these establishments, to read the agreement disclosure, and at that point you have the right to say whether you want to go ahead. We tell you everything that you need in order to get one, and again you have the right to agree with it or not! If you pass this bill, think about all of us who will be without a job, because if this bill passes then we shut down, then the unemployment rate in Kentucky rises, because all of us had to make a decision. We are by no means getting rich off of these places, but we have been trying to help people when they are in bind. If you call that a problem, then you had better reconsider, because when there is no job for people like me, then economically we're broke, and when people like me have no job, then there is no shopping, our bank accounts (what little we have in them,) are closed. Then we have to make a decision on how we are going to go about paying them. You say; well go get another job, then let me ask you something. Do you want to try right now and go and get another job? In this area that I live in, jobs here are scarse, so you tell me. Can you live with the fact that you hurt this place more than you helped it? I for one love my job, I have great employers, who are honest with their customers. They try to help their customers out and they are willing to go that extra mile to help out. Not to fill their pocketbooks, but to help out in a crisis in your life, like getting your car fixed, paying that electric bill, paying your rent. The guidelines in getting a payday loan, is already set high, and we try to screen everyone that comes in, but there are people who get in over their heads because they not only hit one place, they go and hit another. That is why we try to help other companies out by letting them know if we have them as a customer, so no-one will be stuck in a bind, and that does include helping the customer by not letting them get themselves into a bind also. I have great customers and enjoy waiting on them, but I cannot control their decisions in their lives about getting a payday loan. I hope that this bill does not pass, not just for myself, but for the hundreds of other people who, if it were not for these companies, would not have the help that they so greatly desired! Thank You Donna in Kentucky
Reply New Comment

Line

40) Atten: Mr. Upchurch and all voting on House bill 500 [by Bella on March 12, 2008]
I challenge each of you to spend one day in the real world with real people. To many times people vote on things they never take the time to learn about. Spend a day with the people that work at payday loan offices and the people that use them. I have sat on both sides of a payday loan desk. I got my job 11 years ago when my husband and I went to take out a payday loan.I reallly understand the need for payday loans. I see people from all walks of life coming in to my office such as teachers, bankers, nurses, resturant worker, factory worker, and people on fixed incomes for a loan. Everyone has that unexpected bill. Try having a child in school. Last week I spent $92 for ball shoes, and club dues. Next week, itsd money for Beta convention. When you live pay check to pay, money for activities like these is hard to come up with. My husband and I have been married for 17yrs
have one child, and rent. We can not afford to save money because our jobs do not have insurance
and we have to pay cash for medical bills. My daughter couldn't get a kchip medical card from the state becuase we made $12 to much until my husband lost his job after his heart attack! Now, we have a medical card for her, but not for long. My husband is working again this means soon his pay increases, this will result in losing the card again. Payday loans are licensed by The Department Of Finacial Institutions, same as Banks and Finance Companies who are allowed to charge return check fees. Payday loans can't. finance company charge you almost double the amount you barrow. On the other hand, payday loans charge about 17.65% of the amount barrowed for the 2 weeks. The state requires us to state this by saying the rate is 460% APR, that sounds so much higher! Finance Companies send out letters wanting you to increase your loan and keep the same payment. Our office doesn't, still yet we get call preditor leanders. The last time the state changed the laws of operation for payday loans, was in 1998. They lowered our fees. That has been 10 years ago and now they want us to cut the fees by more than half. Shouldn't we be allowed to ask for an increase instead? Everthing else is going up.
I make 8.60 per hour/36-40hrs a week. If you do the math its not much. I see the pofit my office makes before all the bills, it sure isn't enough for me to feel comfortable enough to ask for a raise. I live in a southern county that only has 2 payday loan offices, and for the first 9 yrs my office was the only one. So I know how much people in this county depend on payday loan offices and I know enough to know that even if I had the money to have my very own payday loan office I wouldn't because it doesn't make enough profit. We loan $102 for 2 weeks for a payback of $120, thats only $18. That is less than a overdraft fee the banks charge. We also discount the fee in half if the costomer picks up thier check in one week so for that $102 it would only be $111. Thats $9! Yeah thats a highway robber. TRY TO COME UP WITH MORE SOMETHING IMPORTANT TO VOTE ON THAT MIGHT ACTUALY HELP THE CITIZENS OF KENTUCKY!
By the way if you make it to hard for Payday loans to stay in business, then they will have to close, but the people will just use the ones in Tennessee or the ones that use 1-800 numbers, and send the money strait to the checking accounts. The customers can do those over the phone so they don't know what they are getting in to. Before you say you are protecting the people of Ky. You must first know what the people of Ky. need. I had a state inspector say once that they didn't understand how people got in the shape to have to use a payday loan. I asked him more about infomation on his opinoin and found out that he and his wife both worked for the state and gave thier son who was in collage an allowance of more than I made working that explained his views.

Reply New Comment

Line

41) $18 fee??? Already breaking the law. [by Anonymous Citizen on March 12, 2008]
Where is your shop, I wonder? The current law only allows for a $15 fee. So you guys can't even follow the current law. Crooks. This bill would drop the fee $12. That would still be well over 200% on an annualized basis.
Reply New Comment

Line

42) Read the law before you open your mouth [by Bella on March 13, 2008]
The law states that "A licensee shall not charge a service fee in excess of $15. per $100. on the face amount of the deferred deposit check. A licensee shall prorate any fee based upon the maximum fee of $15. The service fee shall be for a period of 14 days." This meens for every time the customer pays you $100. your fees can be $15. so they get $85. We give $102 so the fee is $18 which is a face ammont (pay back) of $120. By the way we are inspected by The Ky State of Financial Institutions every year and pass.
Reply New Comment

Line

43) News flash: 460% is higher than 17.65% [by Anonymous Citizen on March 12, 2008]
Wow, even the mafia wouldn't have the nerve to charge 460% annualized on their loan sharking.
Reply New Comment

Line

44) Wow [by mgrcashadv on March 14, 2008]
Some people are really clueless. 460% is based on 14 days. Think about your credit card fees, and finance company fees. Break those down into 14 days and see what you get. There is no mafia and if there were they would not tolerate someone as dumb as you who likes to think they know what they are talking about, but you don't.
Reply New Comment

Line

45) Let's see.... [by Anonymous Citizen on March 14, 2008]
My best credit card has an annual interest rate of 6%. So for 14 days, that would be 0.23%. My home mortgage is 5.75%, so that would be 0.22% for two weeks. I do have a credit card with 12% interest. That would be 0.46% for 14 days.

If I borrowed $102 for 14 days on my best credit card, it would cost me 23 cents. It would cost me 47 cents on my higher rate card.

It would cost me $6.12 to borrow that $102 for a year. But it costs $652.80 if a person constantly rolls that $102 loan over at pay day advance shop.

I don’t know......640% still seems like a pretty bad deal for the borrower.
Reply New Comment

Line

46) THANK YOU! [by Anonymous Citizen on April 7, 2008]
I HAVE BEEN THERE!
Reply New Comment

Line

47) you can do math [by Bella on March 13, 2008]
460% is higher than 17.65% yes that is what I am saying. We loan $102. mmmmultiply that by 17.65% and you get $18. add them together and it is $120. the pay back amount. WOW doesn't look as evil does it?
Reply New Comment

Line

48) Just as evil [by Anonymous Citizen on March 13, 2008]
460% percent is 460% whether it is it given on an annual basis, or whether it is pro-rated out every two weeks. There is a reason real banks don't make 2 week loans for $100. There is no way to make money on them without charging highly obscene rates. WOW, and to think the mortgage crisis was set off because a lot of people's variable interest rate mortgage reset from an average of 9% to 13% over the last 4 years.
Reply New Comment

Line

49) payday loans [by Anonymous Citizen on March 12, 2008]
You know what is funny about this whole thing? They talk about wanting the people of this great state of Kentucky to have jobs, but I think that that is all it is T-A-L-K! If this stupid bill passes, then that means all of these people that put this down, if they get into a hard spot one day, then that is exactly where they will remain. You think that you have gotten it all figured out? Then think about this, yes I agree it it up to the person to decide if this is what they want to do, it is their choice. But, do you realize how many check cashing places will be shut down in this state and how many jobs will out? No these companies are not by any means making all their fortune in these kind of companies, because they have other things they can fall back on, but we the employees of these companies DO NOT! That means that unemployment in Kentucky will be on the rise. Because count the places here that have these companies, and when you look in the mirror think about all of the people that will be out of a job! If you don't like these kind of companies, then stay out of them. Not all of us have other income to fall back on, not all of us abuse the system. When we are gone, then you can thank everyone that voted yes to this insane bill, that you put honest working american's out of a job!!! I have a choice to go into work right now, but you pass this bill, then I have no choice and I have no job! No Job, No Paying Bills, No Paying Bills, No Place To Live. Now you think about it!
Annonymous in Kentucky
Reply New Comment

Line

50) All senetaors voting to pass this bill! [by Anonymous Citizen on March 12, 2008]
Are you all willing to pay all our salaries? I wish I got paid to make stupid laws like this one. But no. I work my butt off and then we get put down for trying to help people. ???? Are you all still "The voice for all people"???? Dont think so...it is all for yourself. Then they go and say Kentucky has a poor budget problem. If only they would make better laws than this one.
Reply New Comment

Line

51) predatory lending & ignorance [by Anonymous Citizen on March 11, 2008]
Most states have some regulations about payday lenders. KY should make sure we're on par with other states and not fostering an environment of predatory lending.

Regarding those who use payday lenders...well, yes, they choose to do so, and there are certainly instances when they provide a valuable service.

The real issue is that in our schools, the cirriculum neglects the real world. Students should learn about finance, including things like how to balance a checkbook, how to create a budget, understanding interest rates, knowing about 401ks & mutual funds, credit card responsibilty, etc. Perhaps with more education, people will be able to manage money better and will see the folly of relying too heavily on payday lenders.
Reply New Comment

Line

52) Sounds like someone is just mad! [by Anonymous Citizen on March 11, 2008]
I have to say that it sounds like you are mad, what is it? Did you get fired from your job for something and just taking it out on your company that you worked for? I think some people need to open thier pretty little eyes and realize that we do not force people to keep borrowing the money. If they cant pay it all back at one time they have the option to keep borrowing less and less untill they eventually can pay it off. IT IS THIER CHOICE NO ONE ELSES! DONT GO BLAMING THE ONES THAT ARE THERE TO HELP! Blame the ones that take advantage of it.
Reply New Comment

Line

53) Anonymous Citizen [by Anonymous Citizen on March 11, 2008]
I HAVE USED THIS SERVICE MYSELF IN THE PAST IT CAME IN VERY HANDY WHEN MY VEHICLE NEEDED REPAIRS BETWEEN PAYDAYS LIKE MOST PEOPLE AFTER I PAY MY BILLS THERE IS NOT A LOT LEFT FOR EXTRAS AND MY HUSBAND AND I NEEDED OUR VEHICLE TO GO TO WORK. IT WOULD HAVE COST US A LOT MORE THAN THE PAYDAY ADVANCE IN LOST WAGES. WE COULD NOT GO TO A BANK AND BORROW $200 FOR A WEEK OR TWO. I THINK THAT IF THIS LEGISLATION IS PASSED IT WILL CREATE A HARDSHIP FOR A LOT OF HARD WORKING PEOPLE IN KENTUCKY WHO ARE JUST TRYING TO MAKE IT ONE PAYDAY TO THE NEXT AND NEED A LITTLE HELP WHEN SOMTHING LIJKE THIS COMES UP.
Reply New Comment

Line

54) Payday Advances- I loan you a little you pay me a lot (in the long term) [by Anonymous Citizen on March 10, 2008]
I am sorry to say that I have been employeed by these money hungry companies before. These people have no remorse for the financially challenged. I would hate to know that I got rich off the uneducated and poor people in my community. Many monthly customers who use this service get in so deep because they borrow from one to pay another, not even realizing they cannot be forced to pay anyway. We all know they cannot get you for theft by deception, and they cannot garnish a government check either. How about the drug problem in KY? About that, it is so easy to get money for a quick fix because the requirements are so little. Don't just kick them out of KY, kick them out of the United States. I also agree that banks should be limited too. Charging these prices for a returned check is highway robbery!
Reply New Comment

Line

55) disagree with this. [by Anonymous Citizen on March 13, 2008]
if u were but are not now employed by a payday co.you were not what they needed.as for the comment made about taking from uneducated & poor people those key words mean yes they do help the needy.if they were incompetent they would have no control of their money.they would have a payee.I am so happy for this person that has never needed help,and no one in their family has ever needed a boost.as for the comment on quick money for a quick drug fix.if u no they are dope heads call the cops.alot of people go there for bill assistance.not to support their habits.
Reply New Comment

Line

56) Sick and Tired [by Anonymous Citizen on March 12, 2008]
I too work for a Check Advance and My company is great. I love my job and I love my customers. I have been employeed there for about 9 years. The clients are not clients they are my friends and some of them are like family they come to me with all their problems and i see these people on a daily basis everywhere I go. I hold my head high because i know i am helping them. I do read the disclosure agreement to them and I also ask if they have another check out and i tell them how much they will have to pay back and when the check is due. I need my job I make good money but I work because of insurance I have several health issues and require expensive meds. If i lose my job I will be looking for an advance to get my meds just like a lot of my customers. I say VOTE NO TO HOUSE BILL 500. Save my job and allow me to do what i do best help my community and try to keep the economy rolling. Somebody has to or we will face a depression again really soon with the price of everything going up.
Reply New Comment

Line

57) CASHIER @ PAYDAY ADVANCE [by Anonymous Citizen on March 10, 2008]
I AM AN EMPLOYEE WITH A PAYDAY ADVANCE COMPANY AND I WASN'T SURE HOW THEY WORKED UNTIL I STARTED MY EMPLOYMENT WITH THEM. SINCE THEN I HAVE COME TO REALIZE HOW MUCH IN FACT THAT THESE KIND OF COMPANIES ACTUALLY HELP THE HARD-WORKING CITIZENS OF OUR STATE AND COUNTRY. PEOPLE HAVE MONEY PROBLEMS, BUT YET CAN'T GO TO A BANK TO BORROW A SMALL AMOUNT OF MONEY UNTIL THEY RECEIVE THEIR PAY CHECK. I DON'T AGREE WITH TRYING TO PUT THESE KIND OF BUSINESSES OUT OF WORK. IT WOULD ONLY HURT PEOPLE IN THE LONG RUN, ESPECIALLY SINCE THE MINIMUM WAGE IS BARELY ENOUGH TO LIVE ON ANYWAY. WE HAVE CHILDREN AND FAMILY TO TAKE CARE OF. THE GOVERNMENT NEEDS TO LAY-OFF THIS TYPE OF THING AND WORK ON MORE IMPORTANT ISSUES!!!!
Reply New Comment

Line

58) PAYDAY LOANS [by Anonymous Citizen on March 10, 2008]
I AM A MANAGER OF A PAYDAY LOAN STORE, I HAVE BEEN HERE FOR 2 YRS. BEFORE I WORKED HERE I HAD NO IDEA ABOUT HOW THESE PLACES WORKED. I THINK THEY ARE A GOOD THING FOR PEOPLE. IF YOU USE THEM RIGHT AND TO YOUR ADVANTAGE. I ALSO KNOW WE ARE HERE TO HELP PEOPLE WHEN THEY GET INTO A BIND OR NEED A LITTLE EXTRA CASH UNTIL PAYDAY. BANKS ARE NOT AS WILLING TO HELP WITH THINGS LIKE THIS AND GETTING RID OF OUR SERVICES IN THE LONG RUN WOULD HURT MORE PEOPLE THAN ACTUALLY HELP THEM. I SAY VOTE NO AGAINST HOUSE BILL 500!
Reply New Comment

Line

59) A rose by any other name is still loan sharking. [by Anonymous Citizen on March 10, 2008]
Before pay day loans and easy approval for credit cards, people learned to live within their means. They had to. But much like a crack dealer that gives a free sample to get a sucker hooked, banks and pay loan companys lure in desperate people with teaser rates and promotions. But much like drugs, it is much easier to get on the debt cycle than to get off it. Pass this bill, and don't be so concerned about the pay day loan employees. I'm sure there are crack dealers that could put their sales skills right to work.
Reply New Comment

Line

60) Must be nice to smell so rosey!! [by Anonymous Citizen on March 18, 2008]
SO, glad to hear that one person in this time of economic hardship has the "perfect answer" and the "perfect finances" and a "perfect life". Newsflash "perfect one" not everyone can smell as rosey as you! Unfortunately there are actually people in this world who experience financial hardships, unlike yourself. Or are you one of those types who simply file bankruptcy every 7 years to eliminate all your debt. ANYWHO...I am a single mother who works every day, does not receive government assistance of any kind, and no child support at all. I am responsible for providing for my daughter and yes I am employeed by this industry. Since you obviously have never experienced a hardship financially and probably never darkened any of our doors, I think you need to know what your speaking about before you speak on the matter. I've been employed with this industry for 6 years now, and have developed a personal relationship with most all of my customers. So before you pass judgement and act all holier than thou, ask yourself are you gonna pay for my food stamp benefits, my medical card, and my welfare check if this vote passes and forces hundreds and I do mean hundreds of working mothers out of work like me? If so please post your address so that I can send you my bills each month for you to pay!!! HAVE A NICE DAY!!
Reply New Comment

Line

61) Oh really [by Anonymous Citizen on March 13, 2008]
Well if you think we are loan sharks I hope you never get in a financial situation that you can't handle. And I hope you enjoy spending your tax dollars on all of the employees who will not have jobs, who will be drawing unempl. and using food stamps in order to feed their kids, and meet their own bills. We are here to help the people, do you know how many customers I have helped. Hundreds. People who without my help who have had no electricity, no water, a broke down car and can't get to work. I have had customers come to me because they have had a family member to have health problems such as a stroke and they can not meet all the bills coming in. These are hard working people who could be sitting home drawing a check but instead get up and go to work every single day and they need our assistance from time to time for unexpected expenses. I also have went and picked up customers who needed my assistance took them to my center to borrow money, then took them to the drug store to get the medication they needed in order to live because the monthly check they get is just not enough to cover all the meds they need as well as rent and utilities. So how can you sit back and tell me we are only here to hurt people. We are here to help people. We provide assistance to people who can't go to the bank for help, or who need short term assistance in order to make ends meet. I am talking about teachers, nurses, managers, factory workers, all of whom make more money than I do and they just need a little extra money to get by. Some even come by to get a little extra money for a vacation just incase they don't have enough or if the unexpected may happen. Don't judge people you don't know, and don't trash our industry when you have no idea what you are talking about. Until you have been on both sides of the counter or in our office for a day, and see the lives we touch and the people we help, then honestly how would you know. You don't know. You don't have a clue what you are talking about.
Reply New Comment

Line

62) The truth in payday lending [by Anonymous Citizen on March 12, 2008]
I cant believe someone would compare our type of industry to dealing drugs, hopefully it was more of sarcasm then the truth. Reality check for those who dont have to use the service, we all dont have savings to fall on or that extra zero at the end of our paychecks. Things happen and if used responsibly, we have a wonderful service to our community.
Reply New Comment

Line

63) cash express employee [by Anonymous Citizen on March 8, 2008]
i am an employee at cash express llc and before i started to work for this wonderful company i use to write with them. if it wasnt for the payday advance they give me i would have been evicted from my house. then one day the girl there was telling my husband she needed an assistant and i applied for it. i was hired in october of 2007. i truly love my job and really would hate not to be able to help people in the same position i was in once upon a time. so please keep payday advance in ky for all those who need us. thank you.
Reply New Comment

Line

64) The truth in payday lending [by Anonymous Citizen on March 5, 2008]
The facts are the facts. We are citizens of the United States of America. Anyone who chooses to borrow from a payday loan company,bank or pawn shop has chosen to do so. I am a manager at a very good company. I am responsible for marketing and the collections. I open almost every new customer at my store, and I always, advise to use good sence, borrow only what you need, not what you want. My small percentage of customers and I have a wonderful agreement, I work with them to get them out of the " cycle " and in return I have customers who pay the way it was intended. To put a limit on payday loans would not only put the companies out of business,but, look at the bottom line, my company employees about 120 Kentians. With probly,3/4's of them, like my self with children. Would the senate like to personaly, pay my morgage along w/the many other employees, till we are able to find another descent form of income and support our childrens insurance copays for medicenes and doctor bills? I dont believe so. I know the answer to that, let me right a check to the bank, to cover my $25. co-pay and let it bounce and I can go to the committee and compain til I'm blue in the face about the ridiculous charges the bank forced to me pay. And yes, forced in the state of Ky. I've been told, { dont personaly want to find out} that they will prosecute you for a bad check if its not paid within a certain time frame.

Lets invite anyone to our centers and speak to our customers and take a poll, as to whether or not we are hurting or helping. please choose wisely for this is going to cost Ky alot more than loosing a few businesses, { which we need here}
Reply New Comment

Line

65) Employee @ payday loan company [by Anonymous Citizen on March 4, 2008]
I have been on both sides of the counter. I work for a payday company, & have for several years now. I also worked at one in another state for 10 years. We are not loan sharks, we try to help people in need. I can not count the times that if we had not loaned money to a customer they would not have made it to work, got medicine for thier sick child, and etc. If we were to close down what would they do then? With the price of gas & groceries at this day and time its hard for anyone to get by from payday to payday. I have had to borrow money myself as a single mom of two kids that never gets child support, if it hadnt have been for this, I wouldnt have had money for school clothes, christmas, and I am sure other things. But like everything else you must know your limits.
Reply New Comment

Line

66) Customer [by Anonymous Citizen on March 4, 2008]
I got into a bind with the bank. I forgot to put in my check book were i had wrote a check, and well lets say I was over drafted. If it was not for these pay day loan places i don't know what i would have done. I went there borrowed the money and bam saved me for being out a lot of money. These places are good to help people out. They dont prey on the poor, they are there to help them and everyone else. So please dont pass this bill. If you want to change something change the way the banks work.
Reply New Comment

Line

67) Payday Loans [by quickcashcns on March 4, 2008]
I am writing concerning House Bill 500.I am an office manager for a payday loan company.What most people dont realize is that if it were not for payday loan companies some people would do without food and medicine or some would even lose there house or vehicle because banks will not loan out a small amount of money like a payday loan company does.Seems they are more interested in you doing without than with.Of course when you cant make that payment on that vehicle or house they can come and collect there collateral.We are regulated just like any other institution.We have rules we must follow.Our customers sign a contract just like you do at the bank and it does tell all of our rules and regulations on the contract.It gives you the loan fees up front.Nobody is twisting there arm to borrow from the payday loan company but if you are in a bind and need the money then we are a lifesaver.
Reply New Comment

Line

68) We are here to help [by Anonymous Citizen on March 4, 2008]
I am a manager at a payday loan service I have customers to come in who need to get groceries for there famlies or diapers for there babies we are here to help people in need, with gas prices going up the way they have been some people will come in to get $50 dollars just to fill there tank up until the next time they get paid. so no I do not think this bill needs to be passed
Reply New Comment

Line

69) Payday loans [by Anonymous Citizen on March 4, 2008]
Payday loans are a good thing. They help people that cannot go borrow money from the banks or do not want to pay the outrageous fees the banks have. I work for one. I do everything in my power to help these people out. It isn't just poor people that borrow the money, you would be surprised by the doctors, lawyers, and so on that some in. Changing the rules and regulations will put many of these out of business. There for hurting people that may need an extra few dollars to hold them over or have an emergency come up and can't get the money. This will also put the many people that work for these out of business. I am sorry but i don't want to lose my job. These days there aren't enough GOOD jobs to go around.
Reply New Comment

Line

70) payday lender [by Anonymous Citizen on March 1, 2008]
I am a manager at a payday loan company and we do not prey on anyone. Our clientel is all working class people that hold respectable jobs in our community.Our fees are disclosed prior to signing any documents.We do not solicit anyone citizens seek us out so they can pay their deliquent house payments, car payments, credit card bill and for those on a fixed income the common need is for medication that the state does not help with. Legislation needs to look at everyone in the lending business and at their selves if they truly want to help the citizens in their jurisdiction.
Reply New Comment

Line

71) Why the animosity? [by Anonymous Citizen on February 29, 2008]
I understand this group is looked at as loan sharks and so on, but is targeting this particular group really the answer to helping out low income people. If your going to pick one one group that feeds off the poor why not go after them all, like Pawn Shops who's rates 25% per hundred where payday advances are 15%, Pawn shops have the capability to keep the collateral if the borrower defaults so their is zero loss. State Law already says the Cash Advance owners cannot prosecute for theft by deception, so in many cases they are stuck holding the bag. Now aside from Pawn Shops, what about the Bank's and their outrageous fees. A one dollar overdraft is a 25 dollar charge, then if you dont catch it and you have two more checks of lets say ten dollars each go through than thats an extra 25 dollars each, so your paying 75 dollars on a 21 dollar over draft? By my calculations that is over 300% in some cases. So who is really the bad guy here. If someone knows that they are going to overdraft in that situation and goes to a payday lender and borrows a hundred dollars that 15 dollar fee is pennies compared 1/5 or less that of the potential over draft the bank is going to rake in. So once again, who is the real bad guy here. Have you ever really set down to look at how much in fees the bank really takes in from you in a month. If you think about it, most accounts have somewhere around a 10 dollar fee, per month just for letting you bank with them. Then you have the atm fees that average 2.50, so if you use the atm 10 times that lets say 25 dollars. So your up to 25 dollars right there already. If you overdraft just once then that 25 doubles to 50, and that only one. Most people when they overdraft will go for atleast 2 or 3 checks which means that the bank is collecting between 50 and 100 dollars a month in fees from I would venture to say 60 percent of their customers. Because lets face it, there are a lot more down on their luck people than well off people out there. Lets face it. Their is a need for some tighter restrictions on payday lenders, but dont just single them out, go after everyone putting their foot on the neck of the poor people out there.
Reply New Comment

Line

72) Thank You,, [by Anonymous Citizen on March 6, 2008]
You hit the nail on the head..other than the bank charges a 37.00 fee for over drafts!!!! I am employed by a pay-day loan company, I know for sure that if we are closed down, there would be alot of people that would suffer. Not only that but the banks would suffer as well, those people would end up closing their checking accounts for the fear of overdrawning and not having the money to clear up their accounts..
Reply New Comment

Line

73) Pay Day Lending [by Anonymous Citizen on February 29, 2008]
I am a store manager at a major payday advance company. We do not target the poor as many may think. I have customers that are nurses, and OB/GYN, a president of a company and so on. We offer a SHORT TERM FINANCIAL SOLUTION!!! We do not go break legs for our money and we have a lot of outstanding debt that we will be stuck holding so if anyone is going to be out anything it is the companies that are providing the funds. We play by Kys rules and we are very fair. So in my opinion we are here to help. It is not our fault people dig thereself in holes with more than one cash advance and then go cry about it to the state. They sign saying that they do not have more than one cash advance out.

Thank you and do not pass the bill to ban PayDay Lending.

Reply New Comment

Line

74) Tighten it up [by Anonymous Citizen on February 12, 2008]
Letting these people operate is like legalizing loan sharks. Do they break legs too, if someone falls too far behind in their payments. The mafia is alive and well in Kentucky...................
Reply New Comment

Line

75) reply for leg breakers [by Anonymous Citizen on March 6, 2008]
no we dont break legs if we did half of ky would be walking around on crutches
Reply New Comment

Line

76) just like finance companies [by jiffy 37 on March 3, 2008]
no we dont break peoples legs. All we ask is that we be repayed for the money we loaned them. We do business on a very professional basis. We have contracts just like finance companies. We are no different.
Reply New Comment

Line

77) Yes, yes, yes!! [by Anonymous Citizen on February 12, 2008]
Thank God I don't have to use these services, but they are leeches taking advantage of the poor. They should be very heavily regulated and scrutinized at every turn. They prey (like banks) on the poor and disadvantaged.
Reply New Comment

Line

78) REALITY CHECK [by Anonymous Citizen on March 10, 2008]
I HAVE ONE QUESTION....IF PAYDAY LOAN COMPANIES NEED TO BE SCRUTINIZED @ EVERY TURN, IF THEY ONLY TAKE ADVANTAGE OF POOR PEOPLE LIKE BANKS....SHOULD BANKS NOT HAVE STRICTER REGULATIONS ALSO???? IT'S LIKE THIS, ALOT OF BANKS AND OTHER LENDERS WILL NOT LEND MONEY TO PEOPLE WITH BAD CREDIT OR NOT ENOUGH CREDIT. PAYDAY LOAN COMPANIES LEND TO EVERYONE. AND HONEY, I HAVE NEWS FOR YOU......IT NOT JUST POOR PEOPLE, IT'S DOCTORS, LAWYERS, PEOPLE FROM ALL WALKS OF LIFE. PAYDAY LOANS ARE HERE TO HELP PEOPLE WHEN THEY ARE IN A BIND AND NEED QUICK CASH. PAYDAY LOAN COMPANIES OFFER A GREAT SERVICE TO EVERYONE AND THEY DON'T TAKE ADVANTAGE OF ANYBODY!!! MY ANSWER IS YES, WE NEED TO KEEP THE PAYDAY LOAN COMPANIES GROWING STRONG IN KENTUCKY!!!!!!!!!
Reply New Comment

Line

79) missed fourtune [by Anonymous Citizen on February 12, 2008]
they should not be allowed to run this business in Ky. this might be a good time to bring pressure on them to get out of Ky.
Reply New Comment

Line


Copyright © 2008 USA Votes, Inc.  Patent Pending.  All rights reserved.  Terms of use

A free public service of Bluegrass Institute for Public Policy Solutions
Capitol Building

Search legislation: