Association of Payday Lenders $10 Million Ad Campaign

February 28, 2007

Payday loans KH

I just saw an ad for the Assocation of Payday Lenders on tv. What a ridiculous attempt to try and put the rip-off payday lenders in a good light. If you don’t know, payday lenders will give you cash for a post-dated check that’s on your payday and usually charge $15 for every $100. If you annualize these fees, the interest rates are in the triple digits and some as high as 1000 percent! If you want to pay 1000 percent on a few hundred dollars for an “emergency” you might as well give it to me. Many people get into a dangerous cycle with payday loans with some people actually taking out another payday loan from somewhere else to pay the original payday loan. If you had an emergency fund to begin with, you wouldn’t be paying 1000 percent!

The ad shows some images like a kid with his arm in a sling and a man with a broken-down car on the side of the road. It’s trying to convey that payday loans are there for you in an emergency. You don’t need payday loans if you have an emergency fund! It also talks about how you should only use payday loans for short-term expenses. It should be saying “Don’t use payday loans at all!” Towards the end of the commercial, a nice-sounding woman says, “Always use payday advances responsibly.” The ad sounds like an alcohol commercial, “Please drink responsibly.” This is so ridiculous.

Payday loans are rip-offs! Avoid them at all costs!

You can watch the commercial on YouTube.

Here’s the link to a Boston Globe article on the ad campaign.

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4 Responses to “Association of Payday Lenders $10 Million Ad Campaign”

  1. Terry Says:

    Sure, payday loans are a ripoff, but I think the Church could actually provide a valuable service by giving the userers some competition.

    The working poor often limp from paycheck to paycheck and pay exorbitant proportions of their meager income for rent. (In my state, an estimated 20% of all renters pay at least 50% of their income for rent – NOT including utilities.) At that rate, how are you going to come up with an emergency fund?


  2. I agree with you that the Church could and probably should do something about this.

    Yes, I know that it can be hard to come up with an emergency fund, especially when there’s debt in the equation and just not enough money coming in. That’s why it’s good to start slow. Take some baby steps. I don’t expect anyone to come up with an emergency fund overnight. It takes time, commitment, and a little blessing from God. Get a second or even third job temporarily to make ends meeet. Do whatever it takes!

    Nothing is impossible with God! Always trust in Him and He will see you through!

  3. grace Says:

    well payday loans are a rip off.. but they are the insnatnt and immedite solution to short ter, problems

  4. Dev Says:

    Payday loans may have a high interest rate, but I’d rather borrow the $100 bucks and $15 back instead of having to pay an overdraft fee or a late fee!


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