Ford vies to keep payday bill aliveHouse measures in Senate blocked until issue revived By Yvonne Wenger (Contact)
The Post and Courier
Wednesday, May 21, 2008
COLUMBIA — Supporters of restricting, or outright banning, payday lenders in South Carolina pushed Tuesday to keep the matter alive in the last few days of the legislative session. 
Sen. Robert Ford Sen. Robert Ford, a Charleston Democrat and a lead advocate for the legislation, blocked all House bills on the Senate calendar from moving forward until the matter is revived. "When you get people losing their homes, can't send their kids to college, and we're in hard economic times, something needs to be done," Ford said. "We've got to look out for those people." Payday lenders let people take out small, short-term loans, often at a high interest rate, against future paychecks. Those loans are not available through traditional banks for people with poor credit. Industry critics argue that the lenders trap borrowers in a cycle of debt that forces them to take out new loans to pay off the old ones. Ford's action Tuesday was prompted by House Labor, Commerce and Industry Chairman Harry Cato, R-Travelers Rest, who decided last week that the legislation had hit a roadblock and ended discussion on it for the year. After June 5, all bills not sent to the governor die. Cato said it became apparent that the members would be unable to reach consensus. They had met at least six times on the matter and had a lot of behind-the-scenes conversations, he said. 
Harry Cato Sen. John Hawkins, R-Spartanburg, said the House's inaction is a "great disservice to the victims of payday lending." He wants the industry banned and called it "legalized loan-sharking." Hawkins is one of about a dozen legislators participating in pending state and federal lawsuits against payday lenders. Jamie Fulmer, public affairs director for Spartanburg-based Advance America, the nation's biggest payday lender, said Hawkins' dual position leaves the industry not being able to trust in what capacity the lawyer-legislator is acting. "It very clearly blurs the line," Fulmer said. Hawkins said he sees no conflict and said raising concern about it is an attempt by the industry to divert the spotlight. The industry is willing to sit down with legislators and work out reasonable reforms but, Fulmer said, the push for restrictions is a guise by some legislators who want to see the lenders banned in South Carolina. Fulmer said the industry provides a valuable service for borrowers who use it responsibly. "A ban would deny thousands of folks the ability to get a short-term loan when they find themselves with an unbudgeted or unexpected expense," Fulmer said. Ford, who sponsored the bill, originally pushed to see payday lending banned in South Carolina like it has been in North Carolina and Georgia. He was persuaded to support restricting the loans to one per borrower at a single time, tied to income level. Reach Yvonne Wenger at 803-799-9051 or ywenger@ postandcourier.com. |
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Comments
This article has 34 comment(s)
Posted by auger on May 21, 2008 at 2:51 a.m. (Suggest removal)
I'm a lifelong republican but I have to laud Senator Ford for keeping this bill alive. These folks are the predators that lurk in the shadows just waiting for decent people to fall into a situation that requires fast cash. Same thing applies to the title loan vermin. You would pay less interest to the worst credit card than you will to these vultures. Go get'em Robert. Cato, that photo really makes you look like a scam artist. Time to revalue my party allegiance?
Posted by Chief_SittingBull on May 21, 2008 at 3:10 a.m. (Suggest removal)
The payday folks are horrible and they have a tendency to be close to areas where there are military bases. They take great pride in preying on military members and their families.
“Soldiers are ideal targets for payday loans. They have a steady income from the government, often with little to spare, at an average of $1,200 per month for new recruits. At deployment time, when military families are faced with extra expenses at home and abroad, they may be more vulnerable to the promise of quick cash from payday lenders..."
I've seen it happen quite a few times to very "responsible" military members.
http://www.responsiblelending.org/issues...
Posted by ForPnC on May 21, 2008 at 4:07 a.m. (Suggest removal)
It's about time someone tried to get rid of these lenders. They're disgusting and prey on people that are desperate.
Posted by Slick50 on May 21, 2008 at 6:05 a.m. (Suggest removal)
If you can't outlaw the practice, why not regulate the interest rate? As much as dislike the "payday loan" concept, I feel certain some people actually need the service. Unfortunately they get steamrolled by the high fee involved.
Posted by onevoice on May 21, 2008 at 7:04 a.m. (Suggest removal)
I agree with slick, I have had to use these services a couple of times. The secret to not being eaten alive is to infact pay it back "ON PAYDAY". Regulation would make these buisness' more respectable and less like Loan Sharks. I also think the title loan guts should be included.
Posted by ColdBeer on May 21, 2008 at 8:19 a.m. (Suggest removal)
These places just scream urban and suburban decay. They, along with pawn shops and the car title loan shops make an area look like crap. They just need big signs out front that say "We're here to screw you".
Posted by Tammie on May 21, 2008 at 8:45 a.m. (Suggest removal)
The interest rates for these people are RIDICULOUS. I remember I took one of these loans out eons ago when I was trying to get my house situated, I got $100. I had to pay back $115 and vowed NEVER to get caught up in it again. A girlfriend of mine had 6, which I thought was irresponsible. Shut these places down, car title places too. Like Cold Beer said, they do need to have a sign that says "We're here to screw you" and in fine print "Vaseline, baby oil, and a call tomorrow not included." Lol
Posted by mlittle212 on May 21, 2008 at 9 a.m. (Suggest removal)
Up to this point, I've been pretty disappointed with many of Ford's statements and actions in Columbia. This is definitely his best move yet. I applaud his efforts to rid our state of this predatory business and have found new respect for him.
Thank you, Senator Ford!!!!
Posted by algorelost on May 21, 2008 at 9:07 a.m. (Suggest removal)
I bet if people stopped going there they would close on their own.
Posted by Early on May 21, 2008 at 10:30 a.m. (Suggest removal)
Why do they limit credit card interest rates and not these? Loophole I guess. the average APR for these guys is 469%
They called the lender during the housing market predatory lenders, what are these guys?
Posted by zoomru on May 21, 2008 at 10:45 a.m. (Suggest removal)
SC SENATOR FORD....
Front and Center soldier...keep up the work on this issue. I don't know if you have an OMEGA branded on your arm but this issue resembles a "Q-Dog" moment for you. Oh yeah..oh yeah!
Now if I could be so kind to say that I have personally ripped you numerous time on blogs and statewide EMAILS to editors. Hopefully, you have read at least one of my emails concerning the 18 Landfills in our state. I want ALL public officials to be successfull ..I do. I want to see South Carolina PROGRESS. We humbly need your help in closing all landfills in this state and turning our trash into energy that can be sold to help counties and cities balance their budgets. I wish you could have been at the special finance committee meeting last night. No matter what decision is made after the landfills are scheduled to close; a leader like yourself is going to be needed in guiding statewide closure for the rest of the landfills. I know Charleston County Council wants to LEAD this state in something....you might just need to turn a flashlight ON in our TUNNEL.
Besides it looks like SC Senator CIEPS is being cooked....
http://www.beaufortgazette.com
/local/story/440945.html
Posted by zoomru on May 21, 2008 at 10:55 a.m. (Suggest removal)
Furthermore... Senator Ford
http://www.thetandd.com/articles/2008/05...
/21/news/doc483371fb145bb364704767.txt
This article does not bode well. No state politician flexed their muscle to leverage one landfill closure before awarding the 500 million contract. You missed a chance Mr. FORD. Are you going to let that COAL fired plant in PEE DEE be permitted without holding a statewide news conference? Come on Senator Ford...I think its time to MARCH up to Marion County? Did you know they still have open dumping up there too? Those poor people up there sure are getting the shaft!! Come on Senator....Come on. I know your blood is starting to warm up. Come on?
Posted by zoomru on May 21, 2008 at 11:09 a.m. (Suggest removal)
SC Senator CATO....
I'm on you too....I am all for freedom in business. The less government...the better. But you will be taken to the woodshed on this issue.. you IDIOT!! The SMART should not set up a business to take advantage of the STUPID! Some people will do anything for a BUMP! Just ask former State Treasurer Ravenel. SC Senator Cato...do you listen to the people of the State of South Carolina..not just some DONOR. PIRATE...I'll find your booty. Have you done anything to close down any landfills up there? When is your re-election? I suggest you call DUKE POWER and grace Greenville County Council or any other Council in the upstate and visibly show you can LEAD on something!! Do you still take out the trash? Its money ... sherlock! www.startech.net
Posted by RTC on May 21, 2008 at 11:19 a.m. (Suggest removal)
No one forces people to use these establishments anymore than they are forced to get a credit card that they should not get.
Temptation to borrow money is everywhere.
If people are desperate enough they will find a way to get money, whether it is by legal or illegal means.
I would be happy to see all of these places closed as well as pawn shops. They are all tacky, and the owners are unscrupulous.
If they don't close them, then hopefully some manner of regulation can be imposed.
Posted by Early on May 21, 2008 at 11:59 a.m. (Suggest removal)
How do pawn shops work? You go steal someone's shyt and then they sell it for you?
Posted by Charles_Town on May 21, 2008 at 12:48 p.m. (Suggest removal)
I agree that these places are a blight on any community. I also agree that these places would probably fizzle out on their own if no one used them, but that is not happening. Which should tell us as a society some type of quick financial assistance to some people at times, until some program is in place these places will continue to operate. I have never had to use one of these places, but a family member did and it was outrageous. At the time they did not have other options, and it was a urgent they had the extra money quickly. They paid the next payday, but it was so easy to see how people can get trapped by doing this. I know some people cut scale back on other things sometimes and not need these places, but as noted it is not happening.
Posted by GeecheeBoi84 on May 21, 2008 at 1:17 p.m. (Suggest removal)
Tammie: "We're here to screw you" and in fine print "Vaseline, baby oil, and a call tomorrow not included."
LMAO!! I still remember being warned of payday advances when I was about 10 years old.....
Posted by Charles_Town on May 21, 2008 at 1:33 p.m. (Suggest removal)
Early.. would it really have been that big a deal to type in the word "stuff" instead of finding a way to allude to a word inappropriate for a public forum
Posted by My_50Cents_Worth on May 21, 2008 at 1:40 p.m. (Suggest removal)
Oh, oh, the comment police is on this board; I'll go somewhere else. Early, "shyt" is inappropriate language. :)
I'm so happy I logged in today.
Posted by Early on May 21, 2008 at 1:51 p.m. (Suggest removal)
I know, sorry!
Posted by Tammie on May 21, 2008 at 1:59 p.m. (Suggest removal)
Early, are you due for a spanking this afternoon for your language? lol
Posted by Chief_SittingBull on May 21, 2008 at 2:09 p.m. (Suggest removal)
Watch out Tammie, I don't think he'll have any objections to spankings. LoL
Posted by Tammie on May 21, 2008 at 2:15 p.m. (Suggest removal)
Lol @ Chief
Posted by Girleygirl on May 21, 2008 at 2:59 p.m. (Suggest removal)
No objections to vaseline and baby oil either or the word screw....lol
I would also like to point out that Tammie said all that in one post too...lol
Posted by My_50Cents_Worth on May 21, 2008 at 3:03 p.m. (Suggest removal)
No kidding...Tammie needs to sit in the naughty chair.
Posted by mypointofview on May 21, 2008 at 3:18 p.m. (Suggest removal)
These businesses prey upon those whom allow themselves to be preyed upon. Once again, no personal accountability for making bad decisions. It's always someone else's fault. Ah, what a liberal world in which we live.
Posted by AHLeland on May 21, 2008 at 3:35 p.m. (Suggest removal)
mypointofview hit the nail on the head. The only reasons people get into trouble with these lenders are stupidity and/or inablity to live within their means. If you have a legitimate emergency and need some cash until your next payday and you repay the loan on that payday, there is no problem. As for the higher interest rates, you pay a premium for convenience and they have to be compensated for their risk. I bet they get left in the lurch a lot. Thankfully, I have never patronized one of these places as I have family and an employer to help in the event of an emergency. I know a lot of people aren't as fortunate.
Posted by Tammie on May 21, 2008 at 3:41 p.m. (Suggest removal)
*takes a bow* Glad someone appreciates my naughty mind..lol
Posted by Girleygirl on May 21, 2008 at 3:41 p.m. (Suggest removal)
lmao @ Allwoman
Posted by eyfigueroa on May 21, 2008 at 3:58 p.m. (Suggest removal)
Tammie: What a refreshing breeze of ‘fresh’ (as in naughty) air! Welcome Aboard!
Posted by Tammie on May 21, 2008 at 4:10 p.m. (Suggest removal)
Thank you, thank you, I'd like to thank the Academy for all of the training it took to become naughty on and off line (Academy= 6 brothers)..thanks for helping me out! *blows kisses and tosses candy in the audience* Lol
Posted by auger on May 21, 2008 at 9:56 p.m. (Suggest removal)
Mean people suck.........
Posted by Ucanthandle on May 22, 2008 at 12:05 p.m. (Suggest removal)
What a joke! How is it in ANYONE's best interest to take the choice to SAVE MONEY out of someone's hands by in effect, stating that they're just too stupid to think for themselves?
The backers of this legislation, (besides the sleezy lawyer legislators that want to legislate means to sue the industry), include institutions that will profit by taking this choice out of consumer's hands. Anyone want to venture what the "APR" is on a bounced $50.00 check with a $45.00 bounced check fee is? (Oh yeah-to borrow 50 from a payday lender till your next payday will cost you $7.50, by the way).
But go ahead you latte-sipping goofs that know better than everyone else-tell the people who need emergency money to fix their car to save their job to go ahead and take their sub prime butts to a bank and get the money they need, (like that will work!). Or better yet-beg for it. You disgust me.
Posted by darwin on May 22, 2008 at 4:58 p.m. (Suggest removal)
Government Big Daddy will save you - NOT
If the government prevents these people from giving their money away like this, they will find another way,,
Pawn Shops charge more, that would be a good choice for them.
Bank Overdraft charges are LOTS more, that would finish them off even faster.
GO Darwin GO
JLFS