DeYOUNG: Borrowing money is like renting money. You get to use it two weeks and then you pay it back. You could rent a car for two weeks, right? You get to use that car. Well, if you calculate the annual percentage rate on that car rental – meaning that if you divide the amount you pay on that car by the value of that automobile – you get similarly high rates. So this isn’t about interest. This is about short-term use of a product that’s been lent to you. This is just arithmetic.
DeYoung also argues that most payday borrowers know exactly what they’re getting into when they sign up; that they’re not unwitting and desperate people who are being preyed upon
DEYOUNG: Studies that have looked at this have found that once you control for the demographics and income levels in these areas and these communities, the racial characteristics no longer drive the location decisions. As you might expect, business people don’t care what color their customers are, as long as their money’s green.
And while payday lenders get trashed by government regulators and activists, payday customers, he says, seem to tell a different story.
The guy who got a $150 ticket for public smoking and had to take out a payday loan?
DEYOUNG: If we take an objective look at the folks who use payday lending, what we find is that most users of the product are very satisfied with the product. Survey results show that almost 90 percent of users of the product say that they’re either somewhat satisfied or very satisfied with the product afterwards.
He says he ultimately paid about $50 in fees for the $200 that he borrowed. It wasn’t cheap but he needed the money, and he was able to pay the loan back quickly. To him, the system North Dakota title loans works.
MCKAMEY: Everybody that comes in here always comes out with a smile on their face. I don’t never see nobody come out hollering.