The PLA does not, will not, and has never maintained a blacklist. But if we did have one, Rebecca Flippo would be the poster child for getting blacklisted.
Rebecca Flippo: Rebecca managed a payday loan store in Virginia and then spilled the beans on camera about proven predatory practices.
- Rebecca says: Customers spend $3900 per year to borrow $500.
The PLA Responds: Rebecca, you have tasted the sweetness of these profits. How can you say they are a bad thing?
- Rebecca says: Payday lenders are friendly the first time. Then they show up where you work, at your house, and call your friends and family every day until you pay them back.
The PLA Responds: Contacting your friends and family is how predatory lenders “build community.”
- Rebecca says: Payday lending keeps people poor—and society pays the cost because payday customers are forced into using social services to get by.
The PLA Responds: Let the free market take care of the poor; social services are unnecessary.
Rebecca, you are NOT on our blacklist. And neither is Martin Eakes, the founder of the Center for Responsible Lending, who somehow coerced you into betraying your predatory brothers and sisters by making this video.
The PLA received the following helpful comment from Dezenhall, the PR firm that represents our predatory brethren at the CFSA:
“FYI- The requirements read….
Posters Will Be Large and Prominently Displayed: Companies will prominently position a poster-style display in all stores.
Displays must be:
o At least 18’ X 22’ in size
o Use a font size of approximately ½ inch for all fee and loan-term information”
Note to PLA members: When printing out our new poster template, please make sure to print the poster large enough that the small fonts are approximately 1/2 inch tall. The word “approximately” also gives you significant wiggle room.
Remember, posting interest rates won’t hurt your profits. People will borrow money at any interest rate when they are in a financial crisis.
The PLA today announced that we are embracing the Community Financial Services of America (CFSA) new poster size fee disclosure policy. We were inundated with emails from our members with concerns that the CFSA are not actually predatory lenders. We repeat: they are our predatory brethren, just in sheep’s clothing.
There are no font size requirement for the posters from the CFSA. We recommend using a large poster with tiny fonts. You can download our poster template as a Word document by clicking here.
Seasoned predatory lenders know that fee disclosure is a red herring. People in a financial crisis will pay almost any interest rate.
We enjoyed this related post in our discussion forum: “I’m interested in simpler ways of making money but need some advice. My idea involves digging pits near hiking trails and waiting for hikers to fall into them. Then I would come over and offer them valuable short-term services such as water, food, blankets, ropes, etc., at rates consistent with free market supply and demand.”
North Carolina Must Be Stopped: A report released on 11/13 (the same day the PLA website launched) shows what happened when North Carolina banned payday loans. Apparently, citizens in North Carolina report they are better off without payday loans. They are wrong. Read more.
The CFSA Announces “Unprecedented Fee Disclosure Policy:” The Community Financial Services Association (CFSA) today announced that they will have poster-size fee displays in all payday loan shops. Don’t worry, the CFSA are our predatory brethren, just in sheep’s clothing. We are considering three responses:
- Big posters, tiny font: We notice there is no font size requirement from the CFSA so we may recommend very large posters with a tiny font size of 6 points or less.
- Follow the SCCFM lead: We may reject the CFSA’s call for poster-size fee disclosures and instead follow the lead of the Society for Credit Card Fee Maximization (SCCFM) and reduce the font sizes as much as possible.
- Skywriting: We are considering hiring skywriters to write 400% APR in the sky above our payday loan shops. You see, the issue of whether customers understand the fees is irrelevant. When people are in crisis they will pay any interest rate.
Leo Sorenson Proves Canadians Aren’t All Naïve Socialists: Leo Sorenson, owner of 30 payday loan shops in Canada, courageously charges 720% APR to his customers. Leo is an expert predator, using our well-known scare tactic of threatening to close down loan shops if regulations are passed. Leo managed to scare the Canadian government by threatening to fire only 10 employees. Leo, you’re probably a predatory poker player too—excellent bluff!