I know I have to speak very, very, very slowly for the liberals, they don’t actually understand reality well, as comes up a lot in discussions. This time out, I had a liberal who was complaining that payday loans are horrible for the poor and need to be stopped, especially because they charge over 300% interest.
Except they don’t. What’s really at play here are people playing number games and others who are gullible enough to believe them. None of these idiots knows what’s really going on, nor, I suspect, do they care. It’s just part of the absurd liberal mission to save people from their own stupidity, all the while hurting people in the process.
So how do I know any of this? A long time ago, I helped a friend of a friend set up one of these payday loan/check cashing franchises, in fact, I was in his store on 9/11, listening to it on the radio. Before anyone tells me I don’t know what I’m talking about, I invite them to eat shit and die.
What is a payday loan? Let’s do some history. Long, long ago, banks used to do low-value, high-interest, no-collateral loans to people but the risk was absurdly high, most never got paid back and the banks stopped doing it because it was a losing proposition. However, just because the banks stopped doing it, that doesn’t mean that the need for the service went away, there were still tons of people who had no credit, no collateral, who wanted money to make it to their next paycheck. Where there is a desire, there will be a supplier. That’s how capitalism works.
The whole idea is that someone comes into the store and borrows some money, at what was 15% interest, for no more than 2 weeks, whenever they get their next paycheck. They leave a check for the full amount plus interest, then they come back, repay the amount of the check and get their check back. If they don’t return, the store owner deposits their check. Lather, rinse, repeat.
The problem for the store owner is that most of these people are unreliable. Gee, you don’t say! Their checks bounce. They run. They hide. They lie. A certain percentage are there just to scam the store, they have fraudulent phone numbers for their references, jobs and landlords and that’s only been made easier with the modern reliance on cell phones. They’ll write a check on an account which can be verified, then close the account and off they go with a couple hundred dollars of easy money.
That kind of unreliability makes such customers massive risks. Store owners do everything in their power to do their due diligence and verify information, but a sizeable number of loans default and run away and need to be hunted down, sued and collected upon at significant cost. It’s not a business model for the faint of heart.
Okay, that understood, where is the problem? The liberal asshats are claiming, entirely wrongly, that these industries are charging 300% interest in fees, which is a complete and total lie and an absolute distortion of the facts. They base this upon the idea that a lot of people can’t repay their loans after 14 days, surprise surprise, because these people are financially irresponsible in the first place, so they “roll over” their loans to give themselves an additional 14 days to come up with the money. Now I will be the first one to admit that I oppose this, but you have to look at it from the standpoint of the business owner. This idiot that you gave money to has no money to give back. You can’t get blood from a turnip. The only real option is to give them an extension and write another agreement. Oh sure, they can deposit the check, let it bounce, incur penalties for both the business owner and the customer, that still doesn’t get you any money back in your account. So the customer hands you the 15% fee, writes a whole new check, gets no more money in return and has another 14 days. On the store’s books, it looks like they paid their account in full, then took out another loan because, in reality, that’s exactly what happened. A customer who does this for an entire year doesn’t have one transaction, they have 26 transactions. This is where it gets important.
The idiot liberals refuse to acknowledge that this is 26 separate transactions, they insist it’s really one transaction where there is 15% interest charged every other week. This is complete and total and utter bullshit and wholly indefensible. Nowhere in the contracts that are signed is any term longer than 14 days spelled out. These are legally binding contracts, they spell out the terms and conditions under which the money is loaned and the requirements for repaying it on time. That doesn’t work for the dishonest liberals so they spin a whole line of horse shit, complete with fiddly numbers that don’t match the reality, because they’ve got an agenda to defend.
But what happens if they win, if these payday advance places go out of business? The poor are still going to want that money, that’s why the stores appeared in the first place. The poor aren’t going to get any more responsible with their money. But the liberals really don’t want the money coming from private enterprise, they want it coming from the government. This is just another move to get more tax money handed out to the poor, who won’t have to pay any of it back. That’s the real agenda here.
We just can’t trust liberals farther than we can throw them. They don’t care about the truth, only about appealing to emotion. They like to cast payday loan stores and pawn shops as predatory, when they don’t drag anyone through their doors that doesn’t want to be there. Oh wait, liberalism wants to protect the stupid from themselves, I forgot. They don’t want anyone to actually have to take personal responsibility for their own finances. Papa government has to do everything for them.
Is it any reason I hate the liberals and their idiotic agenda so much?