Blog

Author Archive

Consumer of the Month: Janette

Consumer of the Month: Janette

OCLA interviewed Janette from Mt. Vernon, Ohio in March 2013. Here’s a transcript from the interview:

Do you feel that the charges for these services are up front and transparent?

Yes. They’re very friendly. They’re upfront. They explain everything to you, and you know their fees. You know when you’re due back.

Has there been a time when these services have helped you through a crisis?

Oh yeah. There have been several times that they helped me out of a jam; not only me but my daughter and my grandchildren where I could come here and get a loan on my paystub where going to a bank to try to get a loan isn’t so easy. It would be impossible for me to get a loan if I weren’t coming here.

Do you feel this industry tries to trap you in a cycle of debt?

I think in an unfortunate situation they are the only alternatives that we have, and it’s good that they’re here or you would be in a jam that you couldn’t get out of at all.

What would happen to you or the community if these services were eliminated?

I think there would be a lot of people in trouble. Probably more violence, probably more breaking and entering because people get desperate when they’re in a desperate situation, and they can’t get any help.

What would you say to those people trying eliminate these services?

I would probably say please don’t do it because it’s the only thing I have when I get in trouble to be able to come and get some help. I am a grandmother and I have college students in school, I have grandchildren and when you’re in need and they have a flat tire and they’re alongside the road, and they need a tow truck, you have to be able to go to somebody to be able to get some help for you and your kids. Please don’t shut places like this down because that’s where we get our help.

Posted in: OCLA news

Leave a Comment (0) →

Consumer of the Month: Melissa

Consumer of the Month: Melissa

OCLA interviewed Melissa from Fredericktown, Ohio in March 2013. Here’s a transcript from the interview:

Do you feel that the charges for these services are upfront and transparent?

Yes. Everybody’s really friendly, and I’ve gotten to know them on a first-name basis. … (It’s) step-by-step, asking me for my paystub and seeing how much I’m able to borrow. They know the steps really well.

Has there been a time when these services have helped you through a crisis?

Yeah. There’s been times it’s saved me from overdraft charges on my bank account, and that’s good because those are a lot more expensive, especially if you have four or five of them, and then coming in here and just having the one charge.

Do you feel this industry tries to trap you in a cycle of debt?

I’d say, no, not whatsoever because they’re more helping people, and they’re not jamming it down your throat (like) ‘Borrow more! Borrow more!’ You should know how much you need and not feel pressured into borrowing more than you need.

What would happen to you or the community if these services were eliminated?

I think there’d be a lot more people in really bad situations where they’d probably end up homeless possibly or not able to make it to work because they don’t have gas or not able to feed their kids because they don’t have that $100 extra they need to buy some food for their kids. I think it’s a good service.

What would you say to those people trying eliminate these services?

I would say, “It’s not a good idea. We’re in hard times, the economy’s not real well, jobs aren’t real secure nowadays and a lot of people have to work several jobs to make ends meet. I say any extra help there is, you know? Unless they want to do something about the banks charging so much for overdraft fees or bounced checks, I think this is a better alternative to having the bank charge you. People make mistakes on their checking accounts.

Posted in: Uncategorized

Leave a Comment (0) →

Consumer of the Month: Trina

OCLA interviewed Trina from Mt. Vernon, Ohio in March 2013. Here’s a transcript from the interview:

Do you feel that the charges for these services are upfront and transparent?

Oh yeah, they let you know right up front. You have papers that you sign that you have plenty of time to read and look at.

Has there been a time when these services have helped you through a crisis?

Sure. I’ve had children that have been in a bind before. They live out of state, so sometimes accessing money really quickly is really hard to do. You can come in here at any time, borrow against your paycheck knowing that it’s coming in in a week or two and get it where you can’t just go – if you’re with a big corporation – go to them and get an advance on your pay. You may not be able to walk into a bank and just get a loan instantly and money right away.

Do you feel this industry tries to trap you in a cycle of debt?

I have to disagree with that, and I’ve heard that in the past, but most people especially in small towns like this where there’s not a whole lot of opportunities to have a really good job or a high-paying job where you have money in excess, and everybody has emergencies that come up. And a lot of people don’t have savings nowadays due to the economy and they have to be able to access money quickly for emergencies. And you just can’t walk into a bank or a lending institution and get that. So, you’re reduced to having other ways of getting it. Places like this are open and people can walk in. Nothing is hidden. Everything’s on paper. You can read it right there. They tell you upfront what you pay back. There’s nothing that really can harm you while doing this, and it helps you out of a bind right away.

What would happen to you or the community if these services were eliminated?

I could see a lot of people that are on social security or disability really having a hard time making ends meet at the end of the month when they have no money left, when they have to pay – I know a lot of people who are on fixed incomes who have spend-downs to meet before they can even get their medicines. If they haven’t met those spend-downs and some of them are really high. You take an elderly person who has to meet a $278 spend-down such as my mother, what does she do toward the end of the month when she hasn’t met that spend-down yet she’s out of her meds until the end of the month? How does she make it? How does a cancer patient make it? How do you go on doctor visits if you’re sick all of the sudden? How do you access food if you’re out of food stamps or you just don’t have the money to get that? Or you child gets sick. What do you do?

What would you say to those people trying eliminate these services?

I would say try living on the means and the income that most of the people in Mt. Vernon live on without your family money, without the incomes that you’re making now. You try to live on what most people in here or around this community such as Knox or Morrow county and all of them, you live on what the basic income is, and let’s see how well you do if you don’t have the kind of credit established at a bank where you can walk in and get money handed to you within a couple of days.

Posted in: OCLA news

Leave a Comment (0) →

Short-term loans increasingly mainstream

Short-term consumer loans have long been viewed as a fringe service, but the recent financial crisis proved that the middle class uses them, too. A new Urban Institute study found that 41% of American households reported using “alternative financial services” in 2011. That’s up from 36% in 2009, Time reports. Prepaid debit cards make up a fair portion of that growth, but some 14% of households reported using “nonbank credit.”

Nonbank credit includes payday loans, pawn shops, rent-to-own contracts and tax refund anticipation loans. It’s a sign that there’s a demonstrated need for the product. And that need has grown fastest among households earning over $75,000 a year, Time reports. Households earning between $50,000 and $75,000 were the second-fastest growing demographic while those who make $15,000 or less a year actually scaled back their use of nonbank credit.

The growth in nonbank transactions coincides with a reduction in access to credit. “Across all of these metrics (including new account originations and total credit lines), credit appears to be less available today than it was in 2007,” the CFPB reported recently. Short-term consumer loans fill that gap.

Posted in: Uncategorized

Leave a Comment (0) →
Page 4 of 4 1234