Nevada State Treasurer and Payday Business Owners Debate Industry Issues

Nevada Treasurer Dan Schwartz suggested on Friday that payday lenders be strategically located in low-income neighborhoods and near military bases to target those communities.

But payday business owners have fought back, challenging how their clients are characterized.

“They are hard working men and women, they have jobs, their average income (is) close to $ 40,000, they are teachers, they are nurses, they are firefighters,” said Trent Matson, principal. of Moneytree Government Affairs. “They know they can get a $ 200 loan for $ 33 per charge instead of having their lights off for a $ 100 hook-up fee or having some other punishment that could hurt them even more.”

“Our customers are much smarter than anyone thinks, said Matson.

Matson said these stereotypes come from consumer groups that have a political agenda.

Another payday loan official agreed.

Maria Miuccio, Owner of Cash Kingdom, said, “The more you earn, the more you spend. Sometimes these people just have an emergency. “

The meeting took place at the Grant Sawyer Building in Las Vegas. Some six payday business owners were in attendance with Schwartz.

Nevada has no limit on the interest rates for payday loans. Lenders charge an average of 652% annual interest, according to a Center for Responsible Lending chart of payday loan interest rates in the United States.

Schwartz called the meeting, which was called a Payday Loan Summit, to give payday business owners an opportunity to voice their concerns. It was closed to the public.

Peter Novak, CEO and General Counsel of Cash Factory USA, told Schwartz that while the state emphasizes financial literacy, consumers will still take out a loan if they need it.

“They are going to say ‘I have no choice, I have to get this loan anyway,'” Novak said.

“I’m curious how you would educate them so that before they come to our door or apply for a loan online, they can make decisions where they are not led down this path and get into this” trap ” of debt ”that everyone is so afraid of.

Schwartz said everyone at the top seemed to grasp the issue.

“Payday lenders are the last resort when borrowers have no other access to capital. The problem then becomes when they are trapped in a cycle of debt, ”said Schwartz.

“Maybe we’re going to have to create another route to access capital, but the problem then becomes, how do you price silver? “

Contact Tatiana Villamil at [email protected] or 702-380-1039. To follow @ 7atianaV on Twitter.

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