Just when you thought you heard it all! That is a mind-bogglingly Ballsy move. The unmitigated gall. A company called Payday Money Centers in California has filed a lawsuit in Federal court asking for their piece of the pie. The CEO of Payday Money Centers Dan Gwaltney, has said and I quote,”I am struggling to understand the difference between my employees who walk into our storefronts and the employees at the dry cleaners next door” Now this is coming from a man whose company charges upwards of 400% interest. Consumer advocates are outraged that payday lenders want better treatment than they offer consumers who end up being trapped in the payday loan cycle for years. These are the very companies that get our clients into debt and force them into payday loan consolidation programs. Of course Charles Schumer House minority leader is outraged by this suit and says that the Coronavirus is creating opportunity for these greedy loan sharks.
So, here’s the thing. I get the outrage. I also feel the pain that the people caught in the payday loan cycle feel. Borrow, roll it into another, and again and again. They end up hopefully calling a company like ours with 23 years experience and end up in a payday loan consolidation program. Working with us usually lowers their interest rates down to 0%. So there’s a parachute there, or as they say at a poker table, payday loan customers have some outs. Obviously in my mind, a payday loan consolidation program is the answer. I have a flip side view of this as well which provides an interesting counterpoint. Now, I’ve seen lots of pain and suffering caused by payday lenders like these over the years. I think they need to cap their interest rates and if they don’t the government needs to do it for them. Notwithstanding all that, why doesn’t this company have the right to apply for this loan and actually receive it?I do believe the coronavirus has hurt their business. They didn’t write the Cares act. The Cares act certainly doesn’t target these type companies as ineligible for a loan. These payday lenders also have employees who are Americans just like you and me and has the right to participate in Federal programs. What gives the powers-that-be the right to interpret the Cares Act Paycheck Protection Plan as one which excludes payday loan companies? Just an interesting thought and a very interesting topic that in certain circles will receive a lot of attention. Bottom line, if you’ve been victimized by companies like these and need help quickly, Federated Financial’s payday loan consolidation program is your answer. We want to help you and we care. feel free to dial our 800 number on the top of the page or fill out our 30 second short form. You will be glad you did.