The Need for Postal Banking: Personal Stories

Why We Need Postal Banking

December 17, 2015

Read below for compelling personal stories from all over the United States that show the predatory nature of pay day loans and the difficulty of using banks as an option. These stories were collected by USAction, National People’s Action, and RootStriker on a joint petition against pay day loans.


As a young disabled veteran with 2 small children, I fell victim to payday loans and a title loan. Due to the inflated interest rates we almost became homeless! It infuriates me that these practices are still legal over 2 decades later!!!!



I was trapped in this vicious cycle of debt for over 5 years. It was hell because every time I thought I would finally catch up another car break down or something would occur. I paid hundreds a month in finance charges. This form of loan needs to stop victimizing poor people who think there is no other way to get by with bad credit. At the very least making on time payments and paying the loan back should post to your credit report so non payday loan lenders can see you pay back what you owe.



The sad part is that the people who go to loan stores can’t get a loan from the bank because, they either have bad or no credit to get approved. The loan stores take advantage of this and make a bad situation worse. It is completely unethical and a sad picture of the way humanity is on a downward spiral.



Car title loan for $1200.00.  $300 a month interest. They are killing me and no way to pay back the loan. I don’t know what to do!  Can you help?



I am caught in the payday loans cycle… I cannot afford to pay them off so I have to continue borrowing month after month and it is draining me.



I have multiple payday loans and am in process of paying them off in 12 mos. I used to get an advance of $500.00 with a charge of $50.00 for 30 days or next payday period somewhat cheaper than the payday loans. The banks have stopped advancing any money saying it is now a law that they can’t do this anymore I wish that our law makers would let the banks advance small amounts with lesser interest. Thank-you



I have payday loan and I regret it because I’m paying around 700% interest and I’m in a pinch for money every day.

Mae Rose


I myself am buried in debt and don’t know where to turn. It’s a hopeless and terrifying life and these vultures are just lying in wait for people like me to give up.



I’ve known people who have no other choice than to go to these loan sharks and when they do, the charges are high. We are looking forward to knowing that you are doing all you can to stop this.  This is so important to many, many poor people. Thank you,



I’ve been there. It was horrible, I got free, but it was 2 years of intense struggle in a crap economy, working 2 jobs for as many hours as they would give me. They easy availability of money is important, NO bank would talk to me at the time, but putting a cap on the fees is vital. My current credit score is low 700s, but at the time I was facing possible bankruptcy from medical bills, and needed my car to run. I took a title loan, and spent 2 years scrounging for every cent I could find.



I work next to one of their [payday lending] shops.  The people that can least afford it are their customers.  Even H & R Block charge 35% for loans before Christmas.  I don’t even think that their clients understand just how much they are paying.  It is a National Disgrace!



I am forced to borrow from such [payday] lenders because my Social Security income is too meager to cover my needs. The smallest problem with my old car or any other thing in my life forces me to use lender money.  The fees are horrendous!  It causes me to go into a constant state of extreme financial distress.



I borrowed $2500, some time about two years ago. Payment is about $300, never missed a payment, but it will cost me nearly $115,000 to pay it off if I live long enough or find a way to make double or triple payments.



300% interest should be illegal. My son had to resort to a pay day loan when his wife was unable to work due to chronic depression. This is not an unusual story of many folks turning to these loan sharks out of desperation to put food on their table and to pay mortgages and taxes.



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