According to a Federal Reserve report, pay day loans are the least cost of funding a short term situation when faced with the alternatives such as the cost of a bounced check being a double whammy of bank charges and return charges from whomever cashed the check.

Sen. Angela Monson carried the bill for them.

I have used a couple of these places in the past when money was short and I need to take care of my family. I about passed out the first time I really read the interest rate, in excess of 200%! Needless to say, I paid them back as early as possible to avoid some of the interest but even paying them back early only saved about 23 dollars. We called them legalized loan sharks because I believe one could get a better rate from LaCosta Nostra than these places. Who in the glorious state legislature ever legalized these places anyway?
I used one other place a couple of years ago to get a little cash to tide me through a rough time, it almost snowballed on me, get one "loan", pay it back in 3 weeks then that runs you short again so you have to go back and it ends up creating a vicious circle with no end. I got lucky, or made my luck, worked a ton of OT got out from under their spell and have not gone back. The interest rate are unreal, what are they 150% or some such number...not for me and I am doing my best to teach my children that those types of places are to be avoided. On the other hand, if I had 15,000 or so to invest, I'm not so sure I wouldn't open one of them and loan out a max of 250 dollars and get repaid nearly 500 or more!

Hard to believe, but they're "regulated" by the Oklahoma Department of Consumer Credit. I was legal counsel for them for about ten years. Unfortunately, the Commission has been taken over by the lending industry, and the Department no longer pursues enforcement of the laws aggressively. The new administrator is the past lobbyist for the pawnbrokers. It's foxes guarding the henhouse. They slipped in these laws to legitimize what they're doing, and now they control the only mechanism on the books to protect the consumers. Know what their argument was? "We want to make credit available to as many people as possible, that's good for them and good for the economy." That's exactly the attitude that has led to the credit meltdown and the economic crisis we're in nationally. Now Oklahoma's one of the worst states in the union for payday loans. Folks, you'd better take charge of your government, because legislators are paying attention to the "bad guys" and not the consumers. If you don't play hardball and get involved, this is what happens.

More rapid than AIDS and equally as devastating? I don't think so. Most are unsecured loans with no avenue to collect unless through small claims court and then it would be a judgement on your credit report. A problem for future credit, certainly, but I doubt as devastating as AIDS.

Legalized loansharking. Ever wonder why 500 is the most you can get? That is because if the loan is for more than that these scammers would face criminal charges. Properly regulated, the service is useful.

I've used two companies, Check into Cash and Federal Cash Advance. Both were very professional. It isn't something I would do if I had any other choice because it is expensive.

Ironic that Barry Switzer is BIG on payday loan companies in Oklahoma...

Cassie, I agree totally, unless your utilities are going to be shut off, or you need food.

I have never had to utilize this Legalized form of lending however I was a credit counselor that helped clean up the messes that these companies made. Most of the clients that I saw usually had more then 1 loan thru these companies. I would question them as to why they used this type of service. It was revealed to me time after time that they usually had to go next door to get a loan to pay off the first to keep the companies from sending the postdated check in that was initially used to get the loan and before they knew it they were in bed with every Pay Day loan company in the vicinity. I was agianst this type of business from day one and I am amazingly surprised that they are still operating. The largest percentage of thier clients are poor but they do have plenty from Tinker. These type business have spread more rapid then the AIDS empedemic and the side effects are equally as devasting.

If DOK is so concerned about our personal finances, why don't they just pay them for people. No, sincerely, what an invasive question to ask. I don't think it is any of their business how anyone spends their money. The main concern would be more like "can you afford you subscription the Daily Oklahoman". The Daily Oklahoman is many things, but altruistic is not one of them.

I have had to use this service myself. I was fully aware of the exorbitant interest rates charged by these operations. However, no other traditional service would work. I also had to reapply after the first few times. But I lowered it each time and slowly worked myself away from it. Personally, I don't feel this type of operation is any more "crooked" than other options. It is an unsecured, quick and maybe too easy form of loan. You pay for that convenience and must use your own intelligence.

They prey off the vulnerable and rip them off. My wife took some without my knowledge and I paid hell getting them settled. Legalized loan sharking. I hope they lose big time during this faltering economy

I used to work in this type of a business and they kept a 30day-60day-90day and 120 day late file. Once it passes 120 days they sell them to a collection agency. If a person gets behind the collection calls are the worse actions I have ever witnessed or have been a part of. The first call is to the employer and the second is to the home and then the relatives. The employees of the loan company do nothing but make these harrassing calls all day long. They harrass the employer and the relatives each and every day. Harrassment at its finest. The loans we did were 3-6 month terms at at least 120%. I was a manager and was told to always call my customers,that were turned down in the begining,to come back in and get their loan. Most of the people we loaned to had terrible credit history and shouldn't have been approved for a loan. These companies are nothing but collection agencies that apply fees for late payments and then take the customer to court after 120 days. An amazing business.

i had gotten several loans as well for a payday loan. then have to turn around and get another loan on top of that one to get by. but then found out on the third time trying to pay them back that your only allowed two loans for a certain amount of time., that leaves you broke. I dealt with this and was broke and caused me to fall behind on everything. These loans with interest are not worth it. I get calls now for using there service i even get letters wanting me to get a loan. I think that the state needs to put a cap on what interest the y can charge and maybe the loans could be paid back in two payments instead of one,.they are not worth it. better to use a pawn shop.