Payday Problems

An article in the World Herald addresses the dangers and explosive growth of payday loan companies in Nebraska and throughout the country.  Around my neighborhood I have definitely noticed this as well.  It seems that half of the time when a legitimate business goes under and sells its storefront it is eventually replaced by a predatory payday lender. 

I think a town like Council Bluffs compounds the problem with the payday loan / casino combination that can leave many people in a payday predicament.  Add to that the Methamphetamine problem in the Midwest (recently highlighted by Tom Becka) and communities can crumble in financial and family disasters.

I think it is especially sad when I see a payday predator camped out next to an HR Block and seeing people go to get their taxes done, opt for an instant refund (really a refund advance loan) and take that check directly to the payday predator to save next week’s paycheck. 

If we can pass laws requiring people to wear seat-belts to save them from themselves, we can pass laws to save them from themselves in the lines of payday predators.


  1. Jan says

    H&R Block has the Emerald Card – a reloadable prepaid debit card that clients can load their refunds on. They no longer have to pay the high check cashing fee of the payday predators! Good news is that these clients who choose the Emerald Card for their refund may also qualify for a line of credit they can access at any time during the year. Another reason to use H&R Block for your taxes! No need to pass more useless laws……

  2. says

    Jan, what about the “refund anticipation loan”, which is what I was referring to in the original post that allows the taxpayer to receive money instantly based on a percentage of their refund?  Is that product not similar to the products offered by the payday predators?  Essentially the refund anticipation loan says, I will take the money later as long as you forfeit a high percentage of it as my fee, the same as the payday predators do with paychecks..