What debt trap?
Ever notice how often payday lenders and their supporters engage in subterfuge around the topic of the debt trap. Again and again, the payday industry argues that payday lending is merely as it is advertised: a one-time fix to a short-term problem. There are a myriad of reports that suggest this is untrue.
Payday lenders also like to talk out of either side of their mouths, as evidenced by comments made by Dan Feehan, the CEO of Cash America. "The theory in the (payday) business is you've got to get that customer in, work to turn him into a repetitive, long-term customer, because that's really where the profitability is." Oops.
There are more gems from Cash America Dan, namely advertisements on their online website (cashnetusa.com) that would appear to strong rebuke any suggestions by the industry that the debt trap is simply a figment of the imagination of anyone with a conscience or a calculator.
From their website:
Preferred Member Savings
As a loyal CashNetUSA customer, you can automatically qualify for the industry's first Preferred Member Program, offering you significant savings on every loan. After automatic enrollment, you must use your unique discount code on every loan transaction to receive savings.
You can save 10%, 20% and 30% respectively if you take out 5, 10 or 15 loans. And "repeat borrowing is prohibited in Ohio"? Ohio consumers often get caught in the debt trap by borrowing from multiple payday lenders or by paying off one loan, only to return 24 hours later (after the 24 hour cooling off period). Let's keep in mind that Cash America owns Cashland, one of the largest payday lenders in the state of Ohio. Seems the debt trap IS part of their business plan, despite the fact that they use every opportunity they can to try to shield the truth from voters in Ohio.
VOTE YES ON ISSUE 5!
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