The editorial "Preying hands" (The News, Saturday) erroneously blasted the payday-loan industry for practices involving Social Security and other government benefit recipients that not only do not happen but are also illegal. This response is an effort to explain the truth about payday lenders to The News and its readers.
The News claimed payday lenders "have (customers' Social Security or government) checks deposited in a friendly bank, which in turn will transfer the money to the payday-loan shops." This does not and cannot happen. It is against the laws that govern payday lending, and any cash-advance lender participating in such a program could have its license revoked and be subject to heavy fines under Alabama law and Alabama Banking Department regulations. Payday lenders make cash loans of up to $500 with the customer using a personal check as collateral. At the end of the 10- to 31-day loan, a cash-advance customer either returns to repay the loan or his personal check is cashed.
To back up the false claim, The News used a customer story pulled directly from another publication. That story deals with a store that is not a payday lender. The store mentioned is a consumer-finance lender, meaning it operates under a totally separate set of laws in Alabama than payday lenders. Because of this error, the entire premise of the editorial is off base, and the opinions are rooted in falsehood rather than fact.
The editorial also mentioned Borrow Smart Alabama, a program that brings together payday and title lenders in an effort to better educate the public about the important service they provide in the state and to educate the consumer on the wise use of these services. Members of Borrow Smart have agreed to a Code of Fair Lending to protect customers.
News Source:
http://www.al.com/
Thursday, February 21, 2008
Wednesday, February 13, 2008
Employee who took cash escapes jail
A FINANCIAL employee who swindled more than £3,000 from his customers has escaped jail.
Phillip Cartwright was in charge of cash loans at his work for Provident Personal Credit, but began using his customers' repayments to pay off his own debts, Peterborough Crown Court heard.
The 35-year-old would even pocket cash rewards meant for customers who had settled their loans early.
Cartwright, of Vicarage Close, Cowbit, near Spalding, pleaded guilty to three counts of theft, four counts of fraud through abuse of position and three charges of deception.
In total he stole £3,190, though that had reduced to £2,178 after he paid some money back to the company he had worked for
since February 2003.
The court heard he had taken the cash in a bid to pay off the £10,000 of debt he had built up with his wife. He had sold his car for £750 and was using that money to pay back the Provident.
Judge Patrick Moloney QC passed a two- year prison sentence for each of the counts, suspended for two years. Cartwright was also ordered to carry out 200 hours of unpaid work and attend a five-day debt and financial workshop. He is paying all of the stolen money back at a rate of £80 a month.
Judge Moloney said: "It's a very unpleasant crime. The court is sorry to see a man of good character give way to temptation.
"It's a dreadful thing to rob the people you were working with, they were poorer than you and you were taking £50, £100, £200 from them.
"I could easily send you to prison for two or three years if I wanted to. I hope this will be one stupid mistake."
News Source:
http://www.peterboroughtoday.co.uk/
Phillip Cartwright was in charge of cash loans at his work for Provident Personal Credit, but began using his customers' repayments to pay off his own debts, Peterborough Crown Court heard.
The 35-year-old would even pocket cash rewards meant for customers who had settled their loans early.
Cartwright, of Vicarage Close, Cowbit, near Spalding, pleaded guilty to three counts of theft, four counts of fraud through abuse of position and three charges of deception.
In total he stole £3,190, though that had reduced to £2,178 after he paid some money back to the company he had worked for
since February 2003.
The court heard he had taken the cash in a bid to pay off the £10,000 of debt he had built up with his wife. He had sold his car for £750 and was using that money to pay back the Provident.
Judge Patrick Moloney QC passed a two- year prison sentence for each of the counts, suspended for two years. Cartwright was also ordered to carry out 200 hours of unpaid work and attend a five-day debt and financial workshop. He is paying all of the stolen money back at a rate of £80 a month.
Judge Moloney said: "It's a very unpleasant crime. The court is sorry to see a man of good character give way to temptation.
"It's a dreadful thing to rob the people you were working with, they were poorer than you and you were taking £50, £100, £200 from them.
"I could easily send you to prison for two or three years if I wanted to. I hope this will be one stupid mistake."
News Source:
http://www.peterboroughtoday.co.uk/
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