I was looking at Payday Pundit this morning, as is my regular morning ritual, and something struck me oddly. As I read the article, "Payday Lenders Sue Ohio AG," I realized that our legal system has done Americans a severe injustice.

Why on earth should it cost so much time, money, and resources to defend rights that, as Jefferson proclaimed, are "unalienable?"

In order to remedy any confusion that may result in its wording, The Declaration of Independence should be edited to reflect the following disclaimers:

...We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable rights,* that among these are life, liberty and the pursuit of happiness. That to secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed.**

DISCLAIMERS:

*"Unalienable rights" as referred to in this document is defined as meaning "unalienable" inasmuch as the individual in question is able to financially defend him/herself against any "rights" which the individual may have been alienated from. In cases which the federal government has chosen in its infinite wisdom to revoke said rights, the financial wherewithal of the individual must be sufficient to overpower that of the federal government, which can be increased, as needed, by raising taxes.

**"Consent of the governed" void where prohibited by law. No animals were harmed in the writing of this disclaimer.

We at PaydayFacts.org want to make sure that we acknowledge with humility and thankfulness the sacrifices that our nation's Founders made in order that we can experience freedom in our daily lives. In many ways, this site is an ongoing celebration of freedom and liberty and we feel that we owe a deep debt of gratitude to the architects of our Declaration of Independence and Constitution.

In honor of these brave and revolutionary men, I would like to quote, from our Declaration of Independence, a statement which proves as true today as it was over two centuries ago and has been an inspiration to patriots since its inception:

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.

In a few days, we will celebrate, as a nation, our birth and independence from the tyranny and oppression of British rule. As we reflect upon the revolution which bought us our freedom, let us continue to celebrate our independence and liberty in the marketplace, in our places of worship, in our homes, and in our hearts.

"From every mountainside, let Freedom Ring!!"

(originally posted as a response to The Anniston Star's recent series about Payday Lenders)

The Star's editorial is a pathetic attempt to equate a legal, state-licensed financial service with sin, and its efforts to disguise opinion as fact are deceitful.

The $17.50 fee is not interest, so any APR comparison is a misnomer. It's a one-time fee that never changes; it's the same amount for 10 days as it is for 20 days. A consumer would have to roll over the loan 26 times in a row (impossible to do) to get to a 456 APR.

The "essential wrongness" The Star uses to describe payday lending's interest rates pales in comparison with 1,409 APR for a $100 bounced check with $54.05 NSF; a 965 APR for a $100 credit-card balance with a $37 late fee; and a 1,203 APR on a $100 utility bill with a $46.16 late/reconnect fee.

And profits? Payday lenders earn the lowest margin, just 7.7 percent on $100 of revenue, while banks earn 18.9 percent and credit unions earn 13.5 percent. So just who is earning excessive profits? Look at payday lending branches compared to bank branches: who can afford the expensive brick and mortar?

Emotional fire and brimstone may have a place in the pulpit, but it is a misleading substitute for cold, hard facts and figures.

Judy Powers
Cleveland, Tenn.

The following letter was sent to Ann Rasmussen, but has bounced back after trying 2 different addresses. I would like to see if anyone could pass her this link or repost it as necessary in order that it reaches the intended recipient. Alternately, if you have her email address, you can send it to me at pdfadmin@paydayfacts.org. Thank you.

Ms. Rasmussen,

One of our contributors posted an article yesterday in response to some
information that you had published regarding the Payday Loan industry.
Since we welcome input from all sides of the issue, I would like to welcome
your input regarding the issue. Please take a look at his post and respond
as you feel necessary. If you'd like to respond by posting a rebuttal
article, then please be my guest. You can sign up for an account and post
whatever you like. We don't agree with censoring any posts, so please do
not feel intimidated. I would just like to establish an open forum for us
to discuss these topics.

Here is a direct link to his post: http://www.paydayfacts.org/?q=node/41

Thank you for your time and we look forward to your participation.

Additionally, I would like to welcome any and all contributions from your
organization or any affiliate organizations that you may be associated with.

Sincerely,

Jonas Walker

Thank you, Charles Hunter, for putting an end to the mutilated attempt at journalism embarked upon by the Anniston Star. Over the past week, we have all been submitted to an abortion of journalistic integrity in favor of spouting the CRL's propaganda.

Finally, in his response to these inane ramblings, Short-term loans can lead to financial freedom, Mr. Hunter affirms that consumer choice takes precedence over government restrictions... and for the better.

Long Live Liberty!

-Jonas

by Lawrence Meyers

One of the favorite claims of payday lending opponents is that payday loans are “usurious”. We often see this claim made by the ignorant, though well-meaning, members of various “Interfaith Coalitions”. The religious groups just love to band together to attack the moneychangers, as if we were somehow still ensconced in Biblical times.

Well, it’s the 21st century now, folks. Time to clue in. Payday loans aren’t usury, whether you define it with a standard secular dictionary or even pull from Scripture.

Here’s the definition of usury from a random Google search:

“An exorbitant or unlawful rate of interest”

Let’s take “unlawful” first. States that permit payday loans also specify the maximum allowable fee and/or interest by statute. As long as a payday lender makes a loan within those amounts, the loans are lawful and therefore not usurious. And, as it happens, legitimate payday lenders, which comprise of 99% of the industry, follow those exact laws.

Let’s define “exhorbitant”, per the same dictionary, as “greatly exceeding bounds of reason or moderation”.

We must ask what “reasonable” means in the world of short-term unsecured credit.

If a lender charges a price he deems reasonable that the borrower thinks is unreasonable, the borrower will not take out the loan. After all, if lenders charged 2600% APR, or $100 per hundred borrowed, they would not get any customers. It’s called “pricing oneself out of the market”.

If the borrower wants a price he deems reasonable that the lender thinks is unreasonable, the lender will not make the loan. After all, if lenders charged 36% APR, or $1.38 per hundred borrowed, they would get many customers….but the lenders would go out of business within a month because they would not generate enough revenue to make up for overhead and defaults.

So we know that 2600% is too high and 36% is too low. So what is “reasonable”?

A high-res version is attached for printing and distribution

The application of APR to the Payday Loan industry is inappropriate. The math involved has been intentionally complicated in order to make it appear that the Payday Loan industry is predatory, immoral, etc.

Basically what we’re saying is that the standard of APR does not apply to the Payday Loan industry in the same way that Actual Interest does not apply to the Mortgage Loan industry.

So I put it to you the reader: What do you think a bank would do if they were told that they must operate by the standards used by the Payday Loan industry and cap their fees to $15 for every $100?

We’ve seen opponents of the Payday Loan industry quote time and time again the “egregious 391% APR” charged by Payday Lenders. In practical terms, this “391% APR” is equal to $15 for a two-week $100 loan. In this post, I’d like to break it all down with the intent of showing how expensive loans REALLY are… in PRACTICAL terms.

An article in the series that The Anniston Star is running, posted here fails to include vital facts to its portrayal of the Payday Loan industry. This seems to be the pattern for most Payday Loan opponents, driven by the fear that consumer choice will prevail.

I don't understand why some people are so opposed to allowing people to make their own choices.

Here's my Response to the propaganda posted at The Anniston Star:

In your example, you said that the family was unable to get a loan from a traditional lender.

Based on that, it seems that the answer to this problem isn't to punish Payday Lenders by shutting them down, but for "traditional lenders" to lower their standards in order to keep folks from having to go to the "predatory" Payday Lenders.

That would be the only way to answer this problem, while respecting the rights of the consumers to make their own choices in the marketplace.

Do you know why this isn't an option? Because "traditional lenders" don't want to take the risk.

Contrary to what the Center for Responsible Lending states, the fact is that it's a risky business, and because it's a risky business, there is a higher fee charged to offset writeoffs and collections expenses.

You are blind to the facts because you have an agenda. You're not willing to consider any evidence that does not support your stance on the issue and because of this, you are showing your readers that you have no respect for their right to make their own decisions regarding the issues.

I pity the fact that you are so afraid to post all the facts concerning this issue because you're afraid that your readers will see the truth.

-Jonas

According to a scientific study done by an expert on Alabama's economy, "JohnJ," posted 14 hours ago on the academically-renowned journal, The Anniston Star:

Here in Alabama they [Payday Lenders] flourish because there are so many stupid people who don't understand what they are getting into. Dumb people make dumb decisions and this is a perfect example. And just another reason why Alabama is laughed at by the rest of the nation.

This groundbreaking research proves, as many Payday Loan opponents have suspected, that it is important for the few intelligent people in our society to make rules to keep "stupid people" from making "dumb decisions."

-------------------------------

In case you're not really clear what is going on in this post, I'm being sarcastic. The post I'm referring to is a perfect example of how elitists in our society who think they're smarter and/or better educated than everyone else feel that it is their responsibility to baby-proof society so that the "dumb people" can live in a world where they can't hurt themselves.

The last time I checked, our nation was formed on principles that protect individual freedoms and set every man and woman as equal. I believe Thomas Jefferson said it best:

We hold these Truths to be self-evident, that all Men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the Pursuit of Happiness--