Protesters target local loan businesses
June 4, 2006 - Wichita, Kansas
Some Wichitans are furious over the fast cash places popping up all over the city. On Saturday, protesters went from one payday lender to another, protesting their business. Lenders say they're just doing their job.
Diana Yerton knows all about the problems payday loans can cause. Yerton and her husband took out a payday loan they weren't able to pay back on time. It went from a $300 dilemma to a $600 disaster.
"It just kind of got out of control, and we just let it snowball because we couldn't get money anywhere else," said Yerton.
Lenders say it's a risk, but a small one. A-OK president Bruce Harris says companies like his provide a good and necessary service.
Payday loans are like instant cash. If you can't wait until payday, all you do is write a postdated check to one of the lenders. The loan is paid off on your payday when they cash your check.
Kansas law caps interest at 15 percent, but credit counselors say that can skyrocket to more than 400 percent over the year in late fees. More than one loan can leave you in a money mess. Lenders say so long as you can pay the loan, there's nothing to worry about.
Credit counselors say it's best to avoid loans altogether, but if you do take one and default, talk to your lender. Most have payment options available.
KAKE News, Staff Writer
Related Stories - Kansas
- Legislator targets payday lenders [December 11, 2006]
- Loan shops cash in on the suburbs [September 5, 2006]
- Payday loan company pays $500,000 in back wages [August 18, 2006]
- Some overuse bank overdraft programs [June 26, 2006]
- Interview with JJ Selmon, Community Organizer - LoanMax Protest [June 24, 2006] -
- Regulate payday loans [June 19, 2006]
- Industry leaders, consumer advocates to meet about payday loans [June 9, 2006]
- Protesters target local loan businesses [June 4, 2006]
- Group to protest payday loans [June 2, 2006]
- Payday loan company QC Holdings reports drop in income [May 4, 2006]
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