I'm with you. This doesn't need to happen. The problem you will run into is the unintended consequences shutting off these small, high interest loans to the poor such as NO ONE ELSE WILL LOAN MONEY TO THEM.

That being said, I'm not sure anyone should be loaning money to them at all. In this guy's case, he would have been much better off if no one was able to loan to him in the first place.

If the lender had shown up with the documentation, someone with power to sanction the company might have gotten to read it.

And far from Bevels owing them money, a quick back of the envelope suggests that under any reasonably equitable arrangement the lender owes him somewhere north of $15,000.

Good thing the Supreme Court just helped insulate banks that participate in such fraudulent schemes.

Social Security laws are set up to protect SS payments from garnishment by creditors, and these payday lenders are getting away with end-running those protections. Shameless and disgusting.

There are decidedly two roads that can be taken to rectify this situation.

1)Blame the lenders and ban these loans. So, these services will be available to no one, even those who would use them responsibly. We are subject to the lowest common denominator.

2)Recognize the problem of the borrower's inability to competently understand the loan and it's consequences. Ban this borrower. We don't let children or retarded people who can't understand these participate either. As harsh as it sounds, this guy is also an incompetent for these purposes and should be deemed as much. With this action, the whole of society is not brought to the lowest common denominator.

1) loans like this make no sense for anyone. The whole (ostensible) point of high effective interest rates for payday loans is to cover the supposed high risk of default and the upfront cost of doing paperwork for a loan that won't run very long. If a loan is guaranteed by assignment of social security payments, the risk of default is zero (despite what George Bush tried to tell us about government bonds being just "pieces of paper"). And if the loan is being rolled over for five effing years, there's no reason to recoup the paperwork costs with continued high interest rates.

2) And just how do you determine who is incompetent to understand the terms of a particular loan? Perhaps a test administered -- oh, wait, it can't be by the government, that would be too intrusive -- by the company that would make a profit by inducing people to take on such loans? Oh, wait. That's the way things work today.

Or regulate the interest rates that can be charged on small loans. You know, that would work to. What Bevels dealt with is no different than an off the street loan shark with direct deposit.

paul believes there is no risk for the lenders. If that's true, Paul, anyone could go into this market charging less and clean up.

Adrock wishes to limit the interest that can be charged. Know what pawn shops charge for small secured loans? Usually 20% per month...240% per year. Poor people are poor risks and always pay more for credit..and always will.

Here's an idea....have a single-lender big government solution! No one can be turned down, even for past borrowing transgressions. The poor would have access to the same credit that the Senators now enjoy!!
Think of all the money we would save from duplicaton of recordkeeping alone.

The only question would be will we have a mechanism to force participation, or not....Hmmmm....

I have to say that given the obvious financial incompetance of Mr. Bevels, a story filled with 'he says' doesn't inspire me with a whole lot of competance about it's accuracy.

I have to say that given the obvious financial incompetance of Mr. Bevels, a story filled with 'he says' doesn't inspire me with a whole lot of competance about it's accuracy.
Posted by: Dave Justus | February 13, 2008 12:40 PM

And obviously Dave the judge who ruled against the loan company was some kind of retarded wack too so why should you trust him either...

You know, they used to call people who did business like this "loan sharks" and they put those people in jail. Now days loan sharks advertise on TV and make a killing. How far we have fallen.

That being said, I'm not sure anyone should be loaning money to them at all. In this guy's case, he would have been much better off if no one was able to loan to him in the first place.

The Republican Hack Party at work. They want to get the government out of your life, except when they don't. See also: abortion, private sexual practices, private religous activity, labor organization.

chowchowchow,

The Judge through out the case because the plaintif didn't show up. I don't know why he didn't show up, but that doesn't tell us about any of the facts of the case, such as how much was loaned, how much was paid, and how much Bevels recieved of his SS each month.

I'm not saying that he wasn't taken advantage of, I'm sure he was, but we don't know very much about what actually happened.

Sweet! I know this thread is going to turn into a flame war, because blaming the victim is conservatives' most vital tool. It's their best excuse for doing nothing.

The concern troll is probably the mildest, most plausible form of the argument. What will happen to the poor folk, without anyone to shark them loans?

This quickly escalates to smug satisfaction, and outright hostility. Anyone that stupid gets what they deserve! How dare he try to borrow money for food?

To the first commenter, congratulations are in order. 19 minutes is fantastic!

Shorter El Pendejones: "I despise poor people, especially if they're black. Nothing else matters."

In other news, the guarantee of a direct deposit is one reason why military bases used to be ringed by stripmall payday loan sharks in those states that permitted them.

In 2006, it became illegal to provide payday loans and car title loans to members of the military, or any loan with an APR of over 36%. Why? The Pentagon requested it.

Obviously, El Pendejones thinks that's an atrocious government intrusion.

The obvious preventative measure involves a few seconds judicious use of a baseball bat.

that al viero guy or whatevere is one sick fuck. can't you ban that son of a bitch? When I see his name I am done with comments.
he's probably an illegal on top of it.

Shorter El Pendejones: "I despise poor people, especially if they're black. Nothing else matters."

Mmmmmm.....exactly how does one come to that conclusion? Is this just hate speech against those you disagree with?

Honestly, where *does* that come from......your imgaination??

What will happen to the poor folk, without anyone to shark them loans?

I think we can all agree that they would be better off without them.....as well as alchohol, drugs, fast food, and the list goes on and on. j
My contention is not the terrible effects these loan companies have on the poor as a group. My issue is do you ban the high interest short term loans or do you ban the borrowers as the military has already done?

And if there are those among you who *do* wish to ban these loans for the good of this identity group, then how can you, in the same breath, wish to "un-ban" drugs? Why aren't you all over getting rid of alcohol which disporportionately affects the poor?

How does some broke-dick socialist in Philly reconcile these obviously conflicting positions?

I just had the wonderful little daydream in which Muhammad Yunus pummeled El Viajero into semi-unconsciousness,rips his spine out (Mortal Kombat fatality-style), and beats him with it.

ah, what a lovely image . . .

Dang it, ezra/TAP, when are you gonna get preview?! "this" instead of "the", "pummels" instead of "pummeled," "reveals the utter horror of his shriveled soul to him, inspiring him to change his ways" instead of "rips his spine out [etc.]". . .

"It just isn't fair, what they do to old people," says Mr. Bevels, crying quietly. "It isn't right."

No, sir.
No, it is not.

Cry my freaking eyes out! What a shame that this guy called Buckwheat who can't read is getting taken advantage of. Give me a break, if this guy can't read, and is called Buckwheat, he sounds like he deserves to be taken advantage of and probably has been taken advantage of his entire life! Which should have made him wise to being taken advantage of. I am not a dishonest person, but if I met a guy named Buckwheat who couldn't read, I would ponder the ways he could be swindled. People need to start taking responsibility for their own actions.

So what Grant is telling us is that it's o.k. to take financial advantage of the mentally unfit among us like Buckwheat because Buckwheat didn't take responsiblity for his own actions? Spoken like a true bootlicker Republican. My hat's off to Grant for his chutzpah and scandalous morals.

Grant: "I am not a dishonest person, but if I met a guy named Buckwheat who couldn't read, I would ponder the ways he could be swindled."
Yes, Grant, you are.

So sad, really really sad that this guy didn't just go and ask his bank if they could cash his check for him. Way to go Ezra, way to appeal to people's sappy side. This guy is a horrible example of the average payday loan customer. He can't read, he is old, and people call him Buckwheat. Why don't you find some real examples of payday loan customers instead of resorting to the extreme. Don't get me wrong, I feel for Buckwheat, and I think he needs some real help, but using him as an example to knock payday lenders is really unfair considering that the most of payday loan customers are responsible, home owners, who can read and are generally pretty well educated. The least you could have done is used another example to off set Buckwheat's story.