LTTE in Green Bay paper attacks Sen. Hansen for going after payday loans. [View All]

[TheMightyFavog]

http://www.greenbaypressgazette.com/news/archive/opinion_22391917.shtml

Payday lenders are not the predators

GREEN BAY — Sen. Dave Hansen’s letter about payday loan centers shows a lack of knowledge. He calls payday loan centers predators and parasites — an interesting choice of words, considering most people use those words to describe politicians.

The average payday advance center charges a fee of $22 per $100 advanced. Usually the annual percentage rate is 500 percent for a 14-day advance. Most banks, however, charge an NSF fee of $25 to $32 per bounced check. Imagine the annual percentage rate on those fees.

If Hansen wanted to stop these “predators,” he’d focus on high-pressure, high-fee mortgage and insurance companies that solicit customers via the telephone. When was the last time you were solicited to take a payday advance? Most likely never. The customer must go into the center to take the advance.

Hansen’s ignorance about banking-industry fees may be because of the lobbyists who controlled his campaign.

Ask payday loan consumers who else would have helped them when they were in a financial jam. Not banks, credit unions or even finance companies, and certainly not a politician.

Hansen should focus on issues that directly affect Wisconsin families, such as the parasitic taxes Hansen has no problem increasing.

Elton Schenk

Four more days.... then I'm back to a much saner part of the state... Four more days.

EDIT: Read the last LTTE of the bunch. We could have soooo much fun with that one.