Wal-Mart’s Debit Card: Cashing In on Low-Income Shoppers

You guys are a few months too late on this. 

What gives, Alex G.??  Slow news day at WMW???

In the interest of fairness, let’s look at the same Green Dot prepaid Visa which is sold at other retailers around the country:

Activation - $9.95

Reload - $4.95

ATM Cash Withdrawal $2.50 ($3.00 International ATM)

Balance Inquiry - $0.75

Monthly Maintenance - $4.95

Yeah, that Wal-Mart is really ripping the unbanked off, huh?

You people are something to be believed…

(Source:  www.greendotprepaidcards.com)

good point bbrd.other retailers sell similar cards and no one picks on them and uses the same lame we are taking advantage of the poor tactic that they use on wm.

I would go on record as saying I think ALL companies selling these prepaid debit cards are preying on poor people.

But I would also like to add I think it is HIGHLY distasteful that my local Walmart now has a cash advance payday loan shark conveniently located inside across from the checkout stands.

big deal corgi no one cares about a payday loan place inside wm.if there was one inside fred meyer,k-mart or target you wouldnt whine about it either.that makes you a hypocrit to pick on wm.hey corgi why dont you complain about the washington mutual bank branches in the fred meyer stores you shop at?banks do payday loans now too.where is your same argument about banks inside fred meyer taking advantage of the poor?

YES I would complain if they were in of those stores, but I have yet to see one inside one of those stores.  Notice I didn’t complain about the Sterling Savings Bank also located inside my local Walmart next to the payday advance center.  Gotcha on that one.

I don’t have a problem with Sterling Savings being located inside a Walmart store, or Washington Mutual being located inside a Fred Meyer store or a Wells Fargo being located inside a Safeway, etc, etc.  Just a nice convenience for their customers like an ATM machine.

Comparing a Bank to one of those high interest pay day loan shark places isn’t the same and you know it Matthew!  GAWD, catch a clue already!

But I would also like to add I think it is HIGHLY distasteful that my local Walmart now has a cash advance payday loan shark conveniently located inside across from the checkout stands.

What’s the name of this advance payday loan place, corgi?

Just curious…

corgi most banks and credit unionsoffer payday loans now too.where is your same argument about the banks and credit unions payday loans taking advantage of the poor that you use on all the payday loan places?thats hypocritical of you to pick on payday loan places but not banks and credit unions..

“Great idea, tap into the “unbanked,” “

Why not solve the problem and stop preventing Wal-Mart from providing banking services? Then these people won’t be unbanked.

Corgis complained: “But I would also like to add I think it is HIGHLY distasteful that my local Walmart now has a cash advance payday loan shark conveniently located inside across from the checkout stands.”

What’s wrong with this? Nobody forces anyone to use the service.

There is no support for the idea that these cards prey on poor people or anyone else.

Corgi: Wonder if WalMart has set up REITs in Mexico to offset taxes?

economic,

I happen to think that “Rent To Own Centers” and “Buy Here, Pay Here’ auto dealers are also a ‘rip-off’, may they should shut them down as well!!  If a person is dumb enough to use Payday Loans, that’s their business and who are we to say they can’t use their own judgment to do so?  Just another example of people trying to ‘protect others from themselves’!!

Correction: should read “maybe they should”!!

RDS: Maybe YOU should read the excellent info about payday loans that is avaiable on Wikipedia. I didn’t know that a great segment of those using “pay day’ loans are members of the military,but why would anyone be surprised?Federal law prohibits partnerships between commercial banks AND payday lenders.Most states have usury laws which forbids interest in excess of a certain APR.Pay day loan companies incorporate in states with no such safeguards such as Delaware and South Dakota- this is called “rate exportation”.I would be curious if the Industrial Bank charter that WalMart has repeatedly been denied,would have allowed WalMart to make pay day loans here in the U.S.? Does anyone know if WalMart de Mexico is allowed to make payday loans here in the U.S.,or if they already are? (Wikipedia has startling interest rates given for these loans.)

RDS: Your remark about “Just another example of people trying to protect others from themselves’!! kinda falls hard and flat in the light of these loans being used frequently by military families in an attempt to make ends meet.-Just another example of people trying to PROTECT OUR COUNTRY GETTING RIPPED OFF so you can defend the indefensible!

...defend the indefensible!

That’s a catchy turn of phrase I haven’t heard in awhile, dd.

If anyone asked who in Corporate America most resembles Darth Vader, it would probably be Lee Scott. ~ Jon Ogg

There are so many that get trapped in a vicious cycle with these payday loans.  It’s the rollovers that really kills them as they end up paying fees and charges twice the amount of the original loan.

Here is an interesting article.

http://money.cnn.com/2007/12/13/real_estate/payday_lending/index.htm?postversion=2007121409

ddrb,

Did you hear Hillary in the debate last night, say that she would cap loan interest rates at 30%, I think that that is way too high, 20% would be better for a top!!

And, I was not defending the payday loan centers, if it were up to me, they would be put out of business!!  What I was saying, is that some people should know better than to get hooked up with these loan sharks in the first place and I have little sympathy for people who don’t think before they act and get themselves into trouble!!

Corgishepmom,

“It’s the rollovers that really kills them as they end up paying fees and charges twice the amount of the original loan.”

Sometimes, the people keep rolling over these loans and because they are short term loans, after a number of weeks, the fee rates total up as triple digit percentages!!  That’s the problem, they don’t call it interest, they call it fees and charges!!

RDS there is quite a big difference in knowing better and not having better options.  Many of us on here are probably fortunate enough to have a safety net in case of emergencies.  For instance I have money set aside in savings and retirement funds or could always take a cash advance on my credit card.

These places do target low-income people.  I mean just look at how many of these places pop up in certain neighborhoods.  Even people who have worked at these places admit how evil these businesses are:

http://consumerist.com/consumer/videos/confessions-of-a-former-payday-loan-center-manager-263392.php

get over it better observer no one is going to shut all these places down no matter how much you whine like a two year old so get over it.the banks take advantage of the poor by offering the same payday loans.where is your same argument about all banks taking advantage of the poor?

better no one forces the poor to use these places either.thats what you dont get.

the banks take advantage of the poor by offering the same payday loans.

True, matty v—and what’s worse is many of the nation’s big banks are in bed with some of the better-known payday loan operators in this country.

Don’t believe me?  Google-up Inner City Press and read for yourself…

bbrd: Would you be kind enough to offer what entry in Inner City Press shows where the nations big banks are bedding with pay day loan operators?The current entries on this site refer to subprime lending.Googling pay day loans results in very old entries from 2001, in some cases,re:pay day loans.According to Wikipedia, the Federal government passed a law forbidding partnerships between commercial banks and payday loan lenders. Pay Day Loans and subprime mortgages are not interchangeable terms or products.I did find today’s entry about Alan Greenspan of particular interest,however. To wit,"Paulson and Company -a New York based hedge fund which made millions of $$ in the foreclosure frenzy,has put Alan Greenspan,who allowed it to happen,on its advisory board."Thanks for sharing this site,bbrd.

According to Wikipedia...

And according to Wikipedia, I am the king of Kansas (a nod to a previous post, here).

Your point being?????????

bbrd: Will you please show where on the site you found the entries on payday loans and the banks you refer to? Thank you.

http://www.innercitypress.org/bofa.html

Update of August 13, 2007: BofA, so arrogantly pressing forward to swallow up LaSalle, last week saw the payday lender it assists, Advance America, hit by a class action. And what has BofA to say?

You can go to the referenced site for the rest...I don’t come online so that I can make your hack jobs easier to do.

Before I sign-off, think of this - payday lenders have to get their lending money from somewhere, don’t they, ddrb????

bbrd: I don’t know that “assissting” is technically “partnering with, which is forbidden according to the Wiki entry. But, you pose an excellent question-where,indeed? Saudi Arabia,China, Japan,SouthAmerica,Mexico-maybe the same sources our government has gone to for investments..or perhaps these venues ARE foreign investment driven. Much of the subprime loans were originally purchased by Japanese and Saudi interests before the bottom fellout..perhaps these are foreign funded also,but not directly through a bank. Perhaps others know more about this.(Where’s Robert Fineman when you need him?)

bbrd: I don’t know that “assissting” is technically “partnering with, which is forbidden according to the Wiki entry. But, you pose an excellent question-where,indeed? Saudi Arabia,China, Japan,SouthAmerica,Mexico-maybe the same sources our government has gone to for investments..or perhaps these venues ARE foreign investment driven. Much of the subprime loans were originally purchased by Japanese and Saudi interests before the bottom fellout..perhaps these are foreign funded also,but not directly through a bank. Perhaps others know more about this.(Where’s Robert Fineman when you need him?)

BETTER OBSERVER,

“RDS there is quite a big difference in knowing better and not having better options.  Many of us on here are probably fortunate enough to have a safety net in case of emergencies.  For instance I have money set aside in savings and retirement funds or could always take a cash advance on my credit card.”

And, just what is it that allowed you to do what they somehow CAN’T?  A person creates their own ‘safety net’ if they ‘choose’ to do so and conduct their credit to get a credit card!! 

I worked with a woman who said she couldn’t even save 25 cents a month, making $13.50 an hour, working 50 hours a week, but somehow she always had $80.00 to take her family to Wrestle Mania or $160.00 to take her family to the Monster Truck Show!!  Some people just don’t concern themselves with tomorrow and live just for today, they are the payday advance type people!!  They call themselves ‘paycheck to paycheck’ workers, they get their paychecks and make sure it’s all gone by next paycheck!!

ddrb,

“(Where’s Robert Fineman when you need him?)”

Just go to robertdfeinman.com for his website!!

Gee RDS, did you ever stop and think that a lot of these people might be working low paying jobs at places like Walmart.  There are people out there living paycheck to paycheck.  Silly them needing to buy food, pay bills and the rent.

Then there are circumstances like car accidents or a sick child that may put them in a financial bind.  Not everyone in the lower tax brackets foolishly spend money on Monster Truck Shows like you would have us believe!

BETTER OBSERVER,

“did you ever stop and think that a lot of these people might be working low paying jobs at places like Walmart.”

How is it that you managed to avoid working at Wal-Mart?  Sheer LUCK?

“There are people out there living paycheck to paycheck.  Silly them needing to buy food, pay bills and the rent.”

Have you ever ‘personally’ know these people and watched how they handle their finances?  What you are saying, is exactly what they THINK, “I’m poor and always will be, so why bother”, how else can you explain that these people REMAIN ‘poor’ all their lives?

“Then there are circumstances like car accidents or a sick child that may put them in a financial bind.”

But, a financially responsible person would have either prepared for this situation or would end up working it out!!

“Not everyone in the lower tax brackets foolishly spend money on Monster Truck Shows like you would have us believe!”

Don’t think so, just find one and watch them and see if you agree with what they do!!  And, if you worked in a LOW paying job, would you STAY there for 20 years or would you do something to change your situation, they don’t, because they spend too much time feeling sorry for themselves and allowing others to feel sorry for them?

I know I sound like a ‘Meanie’, but the fact is, ‘you can’t help people who aren’t willing to help themselves’!!  It’s the same principle as feeding a stray animal, after awhile, they rely on you to keep feeding them!!

the ufcw union brainwashes better too much.

And who may I ask has been brainwashing you Vantress?

Loans you get with banks and credit unions are not the same as payday advance loans.  There are usury laws in most states and more stringent guidlines associated with banks.  Certain types of loans are not even offered unless you are a banking customer in good standing.  While anybody with a paycheck stub can go into these payday advance centers.

Interest rates and fees associated with these payday loan advances are outrageous and get way out of hand when the borrower rolls over the loan several times.  They can’t do this at banks.  The only thing that will ding you at a bank is overdraft protection fees.

And yes RDS many people do live beyond their means.  But I’m sure that is much easier to do when you have less.  These loan shark places do prey upon certain individuals in dire straits.  I agree that some of them have put themself there with gambling, drug habits and other poor choices.  But to lump all the poor together is just plain ignorance!

I know it is the Republican ideology that tells us we can all be rich and successful if we just pull ourselves up by the bootstaps and yadda yadda.  But that is a lot easier to do when you actually have a pair of freaking boots!  There are a lot of people that work very hard for very little.  Many people do just barely get by and those even in the middle class face day to day struggles.

And these are not fairytales or ufcw talking points MV.  Look at what’s happening right now.  The economy is in the shitter and we aren’t trying to avoid a recession because it’s already here.

no one brainwashes me i look at things on my own and dont buy a thing the govt and ufcw union tells us.the govt never cuts anything including spending and neither do schools.they continue to wast money on 100,000 consultants that dont do squat.how about cutting them all?

Corgi: Your posts are a real pleasure.

Thanks ddrb, I enjoy your posts as well.

And to Matthew, I didn’t really understand your response to my post.  Are you now saying that our current recession is government and ufcw propaganda?  You’ll have to find a better way to spin that line of BS.

Seems rather real to me as our 401k and Roth IRA funds are worth about $10,000 less than they were a little less than a year ago despite us still making contributions.

Corgi: I am only speculating,but, I would guess that the only recession that Matt is concerned with is a receding hairline.

Good call ddrb!!!  As I’ve stated before, I know who Matty V. is and he does happen to be a short, little, angry BALD man!

I will never allow your intimidations and falsehoods to keep me from my rightful place! I am the only short, little, angry balding man with the right to rule this world! Nobody gets in my way, I brainwashed Matthew Vantress to show the world my powers of making a total moron and ass kissing Walmart blowhard out of a doorknob. If you don’t meet my demands, I will unleash the ultimate weapon upon all of you justice seeking, family raising, honesty freaks, that’s right!! an even more moronic and Walmart ass kissing sicko version of Matthew Vantress. You will all beg for mercy and finally acclaim me as ruler of the Oregonian Moronic Robot Factory!!

better i am not bald and have a full head of hair.you must know vincent wright a former friend of mine who fed you gosip and nonsense.corgi the recession could be lessened by the govt cutting spending and taxes and live with what they get.the unions need to stop being so selfish and greedy.use due money wisely and they should not be allowed to use due money for political purposes.ufcw gets poor contracts always and still does 18 yrs after i left for ones at the bottom end like baggers who work the hardest.

Nope, I don’t know this Vincent Wright person.  As I’ve stated before I know your ex-wife and have even met you once or twice.  You must have joined the hair club for men since that time because back then your hair line was definitely receding.  You try to cover it up by wearing baseball caps but you are definitely on your way to BALD CITY like your dear old dad.

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