Quick cash? Not so much.

Via on Feb 25, 2010

A friend of mine recently asked if he could borrow $60 bucks. He had a hot date that night and was just a little strapped for cash. I thought to myself, “well, I don’t have a lot of money to spare right now, but he would do the same for me.” I gave him $60 bones and he agreed to pay me back in a few days. I thought about being a jerk and charging him interest or making him do some random favor for me in return. I decided that would be in poor taste.

Not everyone has a wonderful, selfless friend like me in their life. They go to a Payday Loan storefront. In addition to selling their soul, they sign a contract agreeing to pay interest on the cash they borrowed. These Payday Lenders can charge up to 500% interest–that would be hundreds of dollars of interest on the $60 my friend borrowed.

This industry has gotten out of hand and they are ruining people’s lives by exploiting them in a time of desperation. And business is booming; there are more payday lending storefronts than McDonalds and Starbucks in Colorado combined!

Rep. Mark Ferrandino has introduced a bill to apply the same rules to payday lenders that other lenders have to play by and capping interest rates at 36%. The loan shark industry is throwing a bunch of money and paid lobbyists to beat the bill, so it’s critical that legislators hear from regular Colorado citizens. If you click the link below you can send a quick letter to your Colorado Representative.

Click here to write your Representative now!

Take Action LInk

For the record, my friend (let’s call him “Preston“) still hasn’t paid me back my $60 bucks. Also, the date he went on didn’t pan out so well.

Payday lenders in the Denver area

About News

Andrew Whitehead is a soon-to-be graduate of the University of Colorado Boulder with a degree in Environmental Studies. He grew up in the grand country of Ireland, which is probably where he began to develop his exquisite beer palate. After moving to Wayne, Pennsylvania, Andrew became seriously passionate about the environment and strives to spread his awareness with anyone willing to listen. In his free time he loves to play hockey and soccer as well as go hiking. All that know him well fear his obsession with goats will land him a staring role on the well-known American TV show “Hoarders”.

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5 Responses to “Quick cash? Not so much.”

  1. We have much the same problem in SD. Largely the attitude is that at least you know how much you get screwed by a pay-day lender and a large amount of people still do all of their banking through predatory lenders.

    For a positive alternative for much of the "unbanked" out there check out "Bank On San Francisco" http://bankonsf.org/

    We are attempting a similar thing in Rapid City ~ http://rcplknowledgenetwork.blogspot.com/2009/10/

    Cheers,

    John

  2. We have much the same problem in SD. Largely the attitude is that at least you know how much you get screwed by a pay-day lender and a large amount of people still do all of their banking through predatory lenders.

    For a positive alternative for much of the "unbanked" out there check out "Bank On San Francisco" http://bankonsf.org/

    We are attempting a similar thing in Rapid City ~ http://rcplknowledgenetwork.blogspot.com/2009/10/

    Cheers,

    John

  3. Steve says:

    Thanks for the links, John!

  4. Preston says:

    Okay, okay. I've finally paid Steve back… Happy I could provide a laugh, jerk

  5. Wow, this was a really quality post. In theory I’d like to write like this too – taking time and real effort to make a good article… but what can I say… I procrastinate a lot and never seem to get something done.

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