By Holly Edwards

I hadn’t thought a lot about payday loans until the graduation dinner for interns at the Public Housing Association of Residents, for which I am Program Coordinator. Delegate Jennifer McClellan, who represents the Richmond area in the General Assembly, spoke. She mentioned that payday loans were not a part of her experience growing up, so what she heard about them was all new and disturbing information. I knew then I had to learn more and wanted more of an experiential learning opportunity.

There are several payday places to choose from so I decided to start with the one closest to my home, in a strip of shops that are owned or frequented by people whose primary language is Spanish. I went in and told the lady at the counter that I wanted to get a loan. She gave me a list of all the documentation I would need.

I returned with my bank statement, picture ID, Social Security card, paycheck stub, and blank check. I was told that my paycheck stub didn’t have the amount of tax withheld so it didn’t qualify as the appropriate document. I explained that I get a 1099 at the end of the year by my employer and what I had was my proof of income. It still didn’t suffice. I returned with a letter from my employer indicating my income and employment status but I was still denied.

I took all of the documents that the first place turned down and presented the exact same information to another payday place and was eligible for a loan.

It didn’t matter how much I needed; it was already decided how much I would be eligible for based on a formula. I asked the intake person how the formula worked and he responded that he had no idea, the computer did it.

I got a loan for $300, my finance charge was $45.00, with an annual percentage rate of 497.72 percent. In return I gave them a post-dated check for $345. I left with the impression that the check would be deposited, they would get the payment and there was no reason for me to return.

While I was waiting for the computer to finish calculating my financial future, I watched people come in and make payments, pay off loans and reapply and I watched one bewildered woman get turned down because her checking account was overdrawn.

I now had my check and I went across the street to the bank where the check was drawn. I don’t have an account there so I had to provide a thumb print. The teller looked at the check and said this check will have a cashing fee. I said, “You can tell by looking at it?” She said, “Yes.” I wanted to know how she knew. She just said after awhile you just know. So I ended up walking out of the bank with only $295 in cash.

On September 4, I got a call from the payday place asking when was I coming in to make my payment. I asked, “Why should I come in? You have the check, just deposit it.” The check was dated August 20.

She said, “You are supposed to come in, make the payment or you don’t get your check.

I said, “I don’t need the check, just deposit it.”

Then she said, “Well, we can do that, but the agreement you signed said you would come in and make the payment.”

I told her I would come in later that day and take care of it but returning to make a payment was not my understanding of the agreement.

I returned to the place with cash to cover all the costs. I laughed at the “no cash on premises” sign as I watched the person at the desk counting the number of 20’s she has just taken out of a drawer. The same two people were working there as the day I got my loan. I asked them where was it in writing that I was to physically return to make the payment and not just have the check deposited. They admitted it was not in writing.

I paid off my loan, I got my check back and as I was leaving I was reminded by them that for every person I referred that got a loan, I would get 10 dollars.

Holly Edwards is Program Coordinator for the Public Housing Association of Residents, a registered nurse, and a newly-elected member of the Charlottesville City Council.