Payday Loans Ending for Pendleton Woman
Thru Jun 14, 2007
Legislators say the law will stop payday lenders from shattering the finances of it's customers. But with cash stores closing down, some people have no where to turn for more money.
"I was going to use that money to pay for other bills, but now I'm stuck with no money," said Rose Tubens, who receives payday loans.
Tubens borrowed $250 from her local payday lender and was going to borrow $500 more. Now the store is closing on July 2 and won't give out anymore loans.
"It puts a big dent in our financial situation as to how to get through the month," Tubens said.
Tubens has to pay off the $250 dollars plus interest by June 15.
Without an additional loan, she doesn't have enough money to pay her bills and the loan on her $1,000 disability income.
"It's a never-ending cycle, I realize. But for some of us with low-incomes, that's the only way we have to survive," Tubens said.
Tubens had to cut costs in other ways.
"It's going to put me in a situation where my utilities are shut off until the bills are paid. You'd be surprised at how cheap you can eat," Tubens said.
Tubens will have to get a smaller loan at a different lender, but it still won't fix her financial situation. Her credit is shot and her unpaid loan will go to a collection agency.
"My credit is non-existant. If you don't need money, you can borrow money. If you need it, you can't," Turbens said.
Tubens says all she wants is a lender that will provide reasonable rates for large loans, but it will be hard for her to get one because of her bad credit history.
The Oregon Senate approved the interest bill yesterday. It sets a cap of 36-percent for annual interest rates. The House already voted in favor of it and Governor Ted Kulongoski says he'll sign it into law.
Source: http://www.kvewtv.com/news/?sect_rank=2§ion_id=3&story_id=2515