Payday Loan Times

AARP South Carolina held a town hall meeting in Rock Hill today to inform people about the harms of cash advance businesses.

“Payday lenders make it easy for consumers to get trapped in predatory debt,” said Teresa Arnold, AARP South Carolina’s legislative director. “We are showing this is a very, very bad option if you really need money in a short period of time.”

There are at least 63 instant payday loan lenders in York, Chester and Lancaster counties, according to the seniors’ group - and these lenders have the ability to charge 390 percent interest on a loan per year.

South Carolina law states that a provider of payday advance loans can advance up to $300 to borrowers for a fee of no more than $15 per $100 borrowed for a period not to exceed 31 days. The borrower gives the lender a check and the lender holds the check for the time of their contract before cashing it.

The AARP’s town hall meetings have received the criticism of one lender who said the services he provides can be cheaper than bouncing checks and credit card late fees.

“We provide a useful service that our consumers understand and appreciate,” said Jamie Fulmer of Advance America. “We help our customers when they have a short-term financial need.”

Fulmer, who has attended some of the town hall meetings, said what the AARP is doing is well-intentioned but the information given to the public is told by anti-industry critics who aren’t always accurate.

“You hear the stories that aren’t the norm,” he said. “Our [cash loan] customers use our products responsibly.”

He describes Advance America customers as middle-income with at least a high school education, an active checking account and a median income of $42,000 per year. The company has four locations in Rock Hill and one in York.

But Arnold has a different take on faxless payday loan lenders.

“Their business model is not to have people go in one time for an emergency advance,” she said. “They wouldn’t make much money.”