Kansas Common People and office holders tackle the problem of predatory Payday Loans

From The Idiot Factor:

Citizens and local legislators came together over the problem of predatory lenders, at a Payday Loan Town Hall, Monday night, here in Wichita.

These companies, such as Payday Loans, move into a poor neighborhood, entice people with easy to get loans and then charge them with interest as high as 300 percent.

“I had car trouble,” said Victoria Boyd, a witness who experienced the predatory lender abuses. “I missed a payment. Then I had to deal with Garnishment.”

Without warning they garnished her pay. They gave her no notice at all. They can legally take up to 25 percent of a paycheck and they often do.

“They took $256 from every paycheck,” Boyd said. “I’m fighting them in court.”

“They opened a payday loan in our neighborhood,” said Ti’Juana Hardwell, Wichita Black Alliance and the MC of the discussions.

She added that she knew when they came in that they where there to pray on people. She said that people sometimes lose their jobs due to their practices and some families get displaced.

A woman in the audience said she knew of a man who took out a $1,000 loan. He had to pay 300 a month and he eventually got evicted from his home.

“They Impact the community and it’s a big one,” said Wichita City Councilman Brandon Johnson. “I walked in and told Speedy Cash what I thought of them. They talked about personal responsibility.”

He added that people have lost vehicles to these outfits. He also said, as did some others who were present, that those companies come in if they have the right zoning.

He also fights against their claims that they are there to help poor people.

“It’s like going to a casino, except you always lose,” Brandon said.

Shanae’ Calhoun, a Topeka organizer for JUMP (TOPEKA JUSTICE UNITY & MINISTRY PROJECT), told the audience about some of the dirty tricks used by various lenders online.

“I clicked on an add and they had my routing number, account number and my address,” she said.

She added that Payday Loan is their model for making money. They are strategically placed.

“They are like a pack of wolves,” she said.

Calhoun talked about finding a way forward.

“This product can be a bridge,” she said. “We need to reform them not ban them.”

Several people there talked about a need to pressure our Kansas Legislators to regulate these lenders. There were three important points these people want legislators to take seriously:

·         Put a cap on the amount of interest payday loan companies can charge.

·         Require the payday loan companies to offer installment plans.

·         Limit how much of your paycheck they can take for a payment. 

One scumbag legislator they are trying to pressure is Senator Ty Masterson (Republican).