Another way to look at payday-loan claims
Op-Ed by Harvey Yoder
I want to thank payday-lending institutions for all of their recent newspaper and other ads. They have enlightened me so much about why we should not compare their rate of interest, over 350 percent as computed on an annual basis, with the typical amount of interest charged, which they insist is not exorbitant at all for an emergency two-week loan.
Their logic is so persuasive I’m thinking of using it the next time I’m charged with speeding, as follows:
Judge: Mr. Yoder, you’re being charged with going 350 mph in a 35-mph speed zone. What do you have to say for yourself?
Me: Your Honor, please understand I have never traveled anywhere near 350 miles for an entire hour. That would be inexcusable, of course. I was going at that rate of speed for only a half-mile stretch, and for five seconds at the most, and only then because otherwise I would have been really, really late getting to work.
Judge: Yes, yes, of course, Mr. Yoder. That makes perfect sense. Case dismissed.
Harvey Yoder resides in Harrisonburg.
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[...] Cong San Viet Nam wrote an interesting post today onHere’s a quick excerptI want to thank payday-lending institutions for all of their recent newspaper and other ads. They have enlightened me so much about why we should not compare their rate of interest, over 350 percent as computed on an annual basis, … [...]
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[...] pay day cash advance payday loan wrote an interesting post today onHere’s a quick excerptI want to thank payday-lending institutions for all of their recent newspaper and other ads. They have enlightened me so much about why we should not compare their rate of interest, over 350 percent as computed on an annual basis, … [...]
Did you think your comment was witty or funny,seems to me just another over educated reporter not telling the facts but his views.
Mark, just so you know, this article was an op-ed from a reader. We delineated it as an op-ed to emphasize the fact that this was an opinion piece. We also delineate pieces that are written by members of our staff by indicating such in the tagline. Thanks for writing!
If Mr Yoder was traveling at a rate of 350 MPH, it was probably to the post office to get his credit card payment in the mail to avoid a 50.00 late fee.
If Mr. Yoder had a 100.00 balance on a credit card & a 100.00 payday loan at the time he was traveling 350 MPH & hit a tree on the way to the post office causing him to go into a coma for 1 year.
When he came out of his coma he would owe the payday loan company 115.00 & the credit card company over 700.00.
Mr Yoder needs to use his head & slow down.
Mr. Graham,
I’m disappointed that The Augusta Free Press would post such an inflammatory and sarcastic article from a reader like that in “Another Way to Look at Payday Loan Claims” posted on February 1, 2008. Mr. Yoder is comparing the illegal act of speeding with the legal act of offering a payday advance. I’m not sure of the logic there but if you want to make an apples-to-apples comparison regarding the Annual Percentage Rate of a payday advance, you just have to do the math.
Using $100 as an example of a 2-week advance, here is the truthful breakdown: The Payday Advance APR is 391%, a bounced check in the same amount is 1409% APR after you pay bank and merchant fees, a late fee on a credit card balance of $100 equals a 965% APR, if you fail to pay your $100 utility bill and have late fees and reconnect fees you’ll pay a 1203% APR and a $100 off-shore Internet payday advance carries a $25 fee which comes to 651.79% APR.
When you have the facts, it is easy to understand why the consumer chooses the Payday Advance product.
Sincerely,
Irene Spargrove
Checksmart Financial
To comment on Irene Spargrove’s response here – we at The Augusta Free Press feel it is important to engage in healthy debates on the issues of the day, and in that context the use of analogy and satire to bring out a point seems to be more than appropriate.
You say that you are “disappointed” that The Augusta Free Press “would post such an inflammatory and sarcastic article” as the one here from Mr. Yoder. I respect your views, but honestly, I would be disappointed if the AFP were to become the kind of publication to refrain from sharing these kinds of perspectives.
Sarcasm, analogy, satire – call it what you will, but this is a form of communication that is uniquely American, and in that context, I’m not going to be convinced that it was anything other than appropriate to share it here in this instance or in any other instance in the future.
C’mon, folks. Anyone with half a brain can see that the Op-Ed is a ludicrous attempt at criticizing an important issue. But what is even more disturbing is the Free Press’ defense of such drivel in the face of several factual and compelling rebuttals. If this communication is “uniquely American,” then one has to wonder if we’ve taken a wrong turn somewhere.
The AFP will always defend speech against those whose aim is to stifle it. We didn’t put “Free Press” in our name just ‘cuz it sounded nice.