Tommy Tucker talking about payday loans and a and a effort that's a foot and a legislature and I guess more closely regulate those. I NC both sides -- this I've never had a payday loan but I can see where if you're desperate for cash and find yourself with a cash flow problem. And you -- ability more for the money which is what I guess this business is designed for than you can have the right to do that. I guess they can also see the other side of it where people that are desperate. Maybe get themselves in over there head in campaign he would bag and then a -- building up and building up but. Then again if they had not gotten a relief from the payday loan but would of the consequence what with the consequences of that -- -- Collins joins us right now CEO of finance America business group and and multi octave. The other side the next half hour or at least try to try McCullough good morning thank you -- Good morning carrier well thanks to take in the time -- this up. Tell me a little bit about payday loans are people that perhaps drive around they see the signs and they don't quite know how they work. Well. I appreciate the opportunity this morning -- -- quote -- archbishop Coke machine. He says there are not more than -- hundred people in the world could truly a Catholic Church but there -- millions to create what they perceive the church to be. That comes up I'll feel about our industry. Understand. People concerned understand the people wanna protect. Com even Louisiana constituent. But at the same time I don't understand exactly what we -- and how we do that -- -- Is preparing. Our BP transaction. And very average credit on. Is about 250 dollars and -- that you're either on or about 20% of what you ball. The only problem without treatment our industry not great streak you've got to remember this morning is a PO. When you -- eight PR which -- the annual percentage rate. To a short term extension of credit. Did balloons. But the perception -- way out of proportion and those are completely illogical. Because this is never designed to be a long term loan. Absolutely not and there are people that abuse there's no question about it. And that it is not meant to be a long term solution for somebody with problems. If somebody it's it's very easy. If you ball hundred dollars from the field and at the black 20% that you're gonna say about twenty dollars. I understand the argument -- -- put the ball long and here people to use our service members of the premium transaction while you're in the Louisiana. People that you are where others understand. The cost of that one. It's going to be better for them. To borrow 400 dollar and -- according bill saying. -- about -- -- and paying a 28 down pretty. Or the -- disconnect that the utility company. That's going to be a script you know three. So they're there when new ball all the way -- that commands basics. Explanation I can get it. As watching this thing on a mob and and -- say to try to McConnell and I'm not implying this to you at all. But when it comes to credit cards as much in and the lottery I was watching. -- on the mom than they are documenting and a couple of ex mobsters and when you know back in the day we had the numbers game medical lottery and it's fine. And somebody else said back in the day we had shot blocking and and now the credit card companies and you look at the interest that they charge. It's pretty much the same things it was illegal when we did it then it becomes corporate government. And it's OK I think some people do have the perception of that as it relates to payday loans and before the legislature changes anything with sodomy and you're -- -- Talk Detroit -- -- CEO of finance American business group in just find out. Before we you know the angry mob with the torches says change it change it. We actually find out what it's about some draw like. If I walked into the door and and I need. 200 bucks to pay the whole phone -- keep the phone bill from getting cut off and I just -- have a cash flow issue. And like I'm not trying to be funny about this may be -- have assets that I don't -- I -- his certificate and do whatever ideas need 200 bucks and I find myself and it's tough plays. Tell me what it's like from the time I -- -- and then what happens is the payments are due. It's someone come into our story and I'll give you an exact example. They need to -- hundred dollars on the field that's twenty dollars. So how long -- But is it could be QB pick could be thirty day is gonna depend on what -- idea that the payday loan the loan will be duke. On their due -- the look for credit for example edited it for our thirty day. -- listening to tell me OK get paid on the fifteenth in the end of the month. So I borrowed on the fifteenth of Barley or make it a hundred bucks. OK let's say hundred dollar eyes are going to be user to comment yet have a checking account you have to have a job. Crank and you're gonna -- -- hundred dollars he have a promise Syrian that -- not all the APR laid out the -- to federal. And we do not run credit checks. And I wanted to -- -- bank's statement. And I wanna see today -- text from your employer. And economic determination is not a company and I -- one of the largest lenders locally based in in -- you know. And but in my company if you have to credit outstanding. Arm problem outlined here. Is now audiences some kind of main. Database where you know that are you trust in the people from a -- -- Well that week we use. -- -- a database. Hi art system call -- track. Not everybody uses -- but you can see you know people at shortstop you can see people. Has had gone -- the place that. And and I have to say something about it database Google could usually because. Senator marking the from the war on tissue repair courageous but he tried to get industry in the opponents together this year. One of his solution was to put in the data bank that -- -- another -- in the database for basically limit customers. To a certain number of loans at a time and end his example storyline but it. This year and the ascension we are -- stories about people they came and and I also -- and I understand completely. They were coming in and and they would bar you know a potential problem -- the time that it unsustainable. Bad is abusing. The system. Well it seems like its treating the symptom but not the underlying problem. That that's exactly right and in my projection I was the only one in the industry that supported senator Martinis after. Because you cannot have somebody cutting ten or twelve alarm. At a time and that is not the way. The the -- -- but it could be cut out. It's kind of a negative pyramid scheme from what -- priority keep. Building a pyramid upside down almost were nobody gets -- Well that there were there were several people that came in and said you know Beckett or 300 dollar electric back well dollars. Well that that's not corrected I actually borrowed in credit 30000 dollar if they pay out now and pretty. It is all about PR game and the opponent has done a superb job. Are competing Republican now you know good people take but there's a reason because. We actually provide very good service for people. And in probably 85% of people -- all the -- if the legislature had won it could be something this year. To get rid of the abuse. They need to look at senator martini and they meet the current campus offering. What he what he did. -- sure it would it would. Get rid of people that are doing in the around the time. But it'll put a narcotic you know there's there's narcotics and he and the doctors have to put narcotic and -- about. Credit so that somebody can't jump around and doctor shop. I tailored to it were to take a break here for new Z you have more time. Ike has always come back I'd like to continue to walk through the process I borrowed a hundred dollars on the fifteenth. It's going to be do when I get paid again which they're dated may thirtieth is who you want to may 31. We'll talk about that when you mention opponents I'd like to know who is against. Your operation and why you know talk about numbers of people it uses service I continuing our conversation about payday loans we would love to hear from yet. At 260187. He till 38668890878. That's extends it and says the payday loan cycle as a downward spiral for anyone in a tight spot that. Needs of our money if you don't have the extra two or 300 that week you won't have at the next -- -- the next week you have to borrowed to pay that loan and borrow again. To make it and we can let Troy address -- comes back my opinion it is. If you're an adult. And a legal age. You should know what you signing off on before you sign off on -- so if you realized. That the first. Payday loan is not. Within your budget to pay back will. I don't know how come pounding your problem if your rational is gonna help -- why anybody. Wouldn't be responsible for get themselves and I don't fix hold their own -- in Louisiana payday loans factor in a 20% of bankruptcy filings. By people in Baton Rouge but you know you gotta wonder if that is a result of the loner because they were in dire financial straits. To begin with the American payroll association finds that 71 point 6% of American employees. Live paycheck to paycheck and puts families and circumstances where. Payday loans might be the only option if they get hit with unexpected expenses like the car breaks down exactly. Or what had -- and drama -- CEO of finance American business group is -- as we invited. Representative Ted James. Democrat from Baton Rouge who is instrumental I guess in limiting the interest rates -- forgot exactly what he wants to do as far as the payday loan situation but he never did return our phone calls. The trauma -- CEO of the finance American business group when it comes to payday loans and interest rates at text comes in and says ask him about the eight PR which we've already addressed that it's not meant to be. A long term loan. Com. I do people you think understand that risk and reward always are directly and during directly. Associated money comes to a matters financial and hours -- more you will under risk. The more reward you should obtain. People don't understand the business model. The bottom line you know if alone 350 dollar -- somebody and they go back and which about 20% of our customers will group. That eight people pay. Just to break even. Now when you talk about PA -- keep going back the only problem that we have is eight PO -- but we're feet date bit. That you ranting about if you were to borrow hundred dollars. -- -- -- -- are your only saw departed on. The fifteenth because as little bit short and at 131. OPEC says so on the 31 typically the day before I'll call you to remind you -- -- trying to attitude tomorrow. At that point you might -- -- I have a problem cannot have an extension. Absolutely. I'm here to help you are not here before. I want to copy I have pals then and now the customers don't use that as a revolving line of credit. Yeah if you -- that hundred dollars and the APRs 521%. That felt horrible but look. It is it does sound a little high trolling yeah. Absolutely but it's a two week alarm okay now that the direct comparison an AARP critic or lately. Like 29 dollars on -- hundred dollar payment is 756%. AP a war. If you have a bounced check when you combine the bank -- -- merchant treat it between 700 or it may be. When you have a utility payments that like on a payment that you're you're trying to. A hundred dollars and you'll feel like -- people like I'm gonna become -- -- At thirteen 100% repeal. APR is illogical when a plot to be short term. Another misnomer that people had it that our interest. -- -- continue to compound to compound that you. You -- 300 payback rate outlook. Now if you paid 3000 dollars over the last few years stroke I don't company. You walked out of that company with 151000. In cash Alex in the credit not 300. And is for example if somebody. We're bar and not pay me for two years I've kind of underdog role on what between needles the we are allowed to chart at the lake city 36%. Eight PR which is basically about. Sixty per month. On the hundred dollar and for the first year the second year where it dropped to eighteen per trip which is about it now eighty remark. So if you came and default and did not pay meat and tree years. Okay you're on the 2500 dollar like people claim. You're on the 209 dollars. There's so much -- information. And the consumer groups and that. And the people that are powered by European people like that have been a superb job. But it factually. Incorrect. I silly if I borrow a hundred and and I don't have it on the 31 and you call me on the thirtieth -- Tommy. You know you loans did MRSA Troy I don't handed. Then what happens from there what's what's my. Obligation going to be. Well -- what I'm gonna do try to work with here. And and the legislature this year one of the the bill that went through that we supported put into place and extended payment -- Now -- in the payment plan with -- OK coming. You know 120 dollars. You cannot make your payment for what will do is full freeze -- reclaim Campbell that you paid at all. In or equal installments. So you're gonna community week you can -- thirty dollars. In for the four week you pay another thirty dollars. And and you can do -- one time a year but we do it all the time anyway but now it's going to be officially in the law. Another that -- electrical departure this year was on the people wanna put out of business. You know that were -- were horrible they put out of business. But all that's gonna do the domain does not gonna go by -- all -- -- -- -- people to the aren't regulated Internet. And what it can do is make people. Have to pay more or they're gonna bounce checks -- forty million dollars a year. Well whatever and one of the people that it. There -- have direct. To some of these consumer group actually adequately. I would look first to go -- therapies are gonna go through the -- Even and -- well for the wrists -- again -- -- the relationship between risk and reward. The of people that are applying for payday loans and guests in their credit it is not the best of shape because if it were to be they would be doing business with you today -- Well -- not negatively and. And another misnomer and and it is completely fair and appreciate you bringing that a the average person in and that uses our service is dedicated to have a high school degree had a problem -- either college degrees are. Some college. -- average hardworking American then -- income about if you opt out per year we have become so mainstream. I mean is astonishing who comes through market if you were walk through. I would not be surprised at all but creature realizing our market and I just bounced a check to a wanna pay thirty dollars to the credit union are going to pay. You know twenty dollars to -- America. As a that you wouldn't be surprised because I've gone through a divorce. Draw I gotta run but I appreciate your time I really do you. But thank you so much for the opportunity and outlook continue to Powell thank you we just try to get the facts out there.