Payday Loan Game Is a Terrible Game

What happens when you borrow money and can’t pay it right back? They come get it anyway: “Ivy Brodsky, 37, thought she had figured out a way to stop six payday lenders from taking money from her account when she visited her Chase branch in Brighton Beach in Brooklyn in March to close it. But Chase kept the account open and between April and May, the six Internet lenders tried to withdraw money from Ms. Brodsky’s account 55 times, according to bank records reviewed by The New York Times. Chase charged her $1,523 in fees — a combination of 44 insufficient fund fees, extended overdraft fees and service fees.”

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7 Comments / Post A Comment

ThatJenn (#916)

I read this story yesterday, and it is utterly ridiculous. Payday loans make me cry.

(Also, your link goes to page 2.)

EvanDeSimone (#2,101)

Payday loan companies are among the most predatory businesses out there and they specifically target people who are already struggling. I hesitate to admit this, but I work in banking and we do everything operationally and legally possible not to cooperate with these people. This includes blocking their merchant ID and screening all overseas transactions on our debit card network. Banking isn’t always a moral industry but in this case we’re making an effort.

julebsorry (#1,572)

I’ll admit to having taken a payday loan once. I’d been unemployed and had basically depleted all my savings and maxxed out my credit cards before getting a new job. And, I had a friend’s wedding coming up with a lot of expensive obligations that I would have been very embarrassed to bow out of due to lack of funds, and thought “hey, I have a good job. I’m getting back on track financially – they won’t be able to prey on me”. In theory, I should be the kind of person who CAN afford a payday loan…I just needed $ a week before my payday and figured I could take the hit of the substantial finance charge in return for not suffering embarrassment as a cheapo bridesmaid.

WRONG. Those people are bloodsuckers. I thought I was pretty well-versed in this kind of stuff (or at least smart enough to play the game fairly and not get tricked). Not. Possible. I’m pretty sure I paid well over 500% by the time I was finally able to pay them back. So, warning to any of you that might be tempted and might think “It can’t happen to me” – you’re wrong. These guys know every trick in the book.

@julebsorry I’d love to hear more about this! I know that these businesses are awful, but I have never heard a personal experience. You should write about it for the billfold.

thomas1 (#6,922)

Thank you so much for such a great blog.
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anmanblack (#7,007)

The WaPo headline should be “White People in Virginia Don’t Like Being Reminded of Slavery” find

A lot of people are against pay day loans. But it is much better to take emergency loans bad credit than to borrow money somewhere. I like taking pay day loans because it’s fast and simple way of getting money. You don’t have need to ask money from your friend or relatives. You simply take loan with low rate and pay when you can pay.

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