Hi, welcome to
Dollars and Sense.
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I'm Yvonne Lewis, your
co-host for this program.
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And our primary host is
Ryan Mack, a Financial Literacy
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expert, and just a
great brother in the Lord.
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Ryan, it's so good to
have you on this program.
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Thank you for having me here.
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As always, this
series has been so fun.
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We've been going into a
lot of different areas of the
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Bible and the word.
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And I just hope the people
out there receive it well.
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Me too, me too! And
the topics are so relevant.
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And today's topic
of financial predators;
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that's going to be the bomb.
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I mean it absolutely;
you're right about it.
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I mean this is one of the
topics I've been passionate
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about for many years.
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And I remember that I was
always, when I was on CNN,
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and they would always call
me to essentially address what
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these prepaid debit cards, or
the RushCards, and the negative
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things that were about them.
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And they really do take
advantage of a lot of people.
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And so we have a Scripture here
today that I think we'll really
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set the tone for
what we can do about them.
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I mean we see them all
on street corners every day,
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and we're going to walk
down a neighborhood street,
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and we're going to look at
the different stores virtually
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through this show today.
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But I think Hosea 4:6 really
brings it home when it says:
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I mean that to me really
exemplifies the entire crux of
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how these
financial predators, this
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360 billion
dollar industry. Wow!
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And they're making more and more
money every year off the backs
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of exploiting poor people.
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Off the poor! 360 billion
dollars from poor people!
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Absolutely. What they're
doing is they are, they look,
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and you know what, whether
you are in rural America,
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or Appalachia, or
whether you're in urban America,
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or you're
outside of veteran bases.
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You know, this is not a black,
or brown, or a white thing.
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This is a green thing.
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They are attacking those areas
that they feel are the most
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vulnerable to being exploited.
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I mean I remember sometimes
I would be watching BET
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and I'd say, You know
what, I see this RushCard,
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and I see the BET control card.
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These are prepaid debit cards.
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And we'll explain
what they are in a second.
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But then I would see maybe
they're attacking the minority
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and the people
of color community.
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I said, Well, wait!
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And then I would see
Troy Aikman, and Hulk Hogan
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for Rent to Own stores.
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I said, Wow! Then I
would see George Lopez
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with the Mango card.
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And I would see Justin
Beaver with the Believer card.
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Then I would see Suze
Orman with the Approved card.
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Then I would see Tom
Jordan with the REACH card.
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Or, I think, Little
Wayne had a Ratchet card.
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I don't know, I don't know...
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A ratchet card!... but it was...
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I don't know the name
of it, but they're just,
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they're coming all over.
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And they don't care
about your race, or your color.
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They just care about the green.
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And they're coming,
they're coming hard.
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And you know
what? It's interesting
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because marketing is key. Yes.
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And the way it's marketed, it's
like this is so great for you.
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Just get this card, and you
can get whatever you want. Yes.
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And the thought of having to
pay it back, or pay it back plus
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something,
nobody's thinking like that.
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They're just
thinking, I've got this card.
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I want to go shopping. Right.
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I'm going to buy
whatever I want. Boom!
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And you know, a lot of
individuals, when they get these
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products they
defend them to the hilt.
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And the bottom line is that...
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And I've interviewed a lot
of people just asking them,
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Why do you use this
particular establishment?
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What's the value behind it?
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What's, what do you think is?
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Why is this
RushCard so valuable to you?
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And do you not know that
there are other alternatives?
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And they say, Well,
no, this is all I know.
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This is all I know.
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All I know is this
check cashing facility.
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All I know is a Payday
loan if I'm short on money.
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All I know is the pawn
shop to help get me by.
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All I know is this prepaid debit
card that makes me spend money
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to use my own money.
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This is all they know.
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So, again, My
people are destroyed
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for lack of knowledge.
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What's happening is that,
in our communities, is that as
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this 360 billion dollar
industry becomes big and bigger,
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these stores move into our
communities and they have a
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vested interest in
keeping people poor.
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They have a vested
interest in having a perpetual
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underclass of our economies.
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And as long as the indivuals
are poor they can make money.
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They can make more
money, because it's
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expensive to be poor.
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Because all of these fees,
and the lack of opportunity,
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the lack of upward mobility,
the lack of upward movement,
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if you've got a bank
account that means you're
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establishing your credit.
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That means that if you've
got more wealth the bank wants
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you to make more money.
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They want you to move
up the ladder of success.
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Because as long as you bank with
them then you'll be levy to say,
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Hey, here are all
these other banking
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products that you can use.
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And as long as you are moving
up the ladder, than we have a
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vested interest in
seeing you be successful.
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But the financial creditors
had a vested interest in saying,
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We don't want you
to improve your credit.
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We don't want you to budget.
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We don't want
you to do anything.
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So I have a list of these
financial predators that I've
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pointed out in our communities,
and would love to go
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down them one
by one. Yeah, lets!
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So we're walking down
the street and we're in urban
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America, or
Appalachia, or rural America,
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or outside a Veteran base.
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What's one of the
first things we see
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is this check cashing facility.
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Now this check
cash facility, again,
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prays upon what we don't know.
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They hope that you
don't know that you can
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open up a bank account.
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They hope that you don't know
that you can repair your credit.
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They hope that you don't
know that they're going to be
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charging you between 1 to
5 percent of your own money
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just to cash your own money.
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And I've seen people cash
checks, as I had one individual
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that we worked with.
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She had actually cashed a
check for a home owners loan,
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home equity line of loan.
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And she got that check
and it was for upwards of over
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$15,000 for a fee that she paid.
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A fee that she paid! The fee?
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The fee was over $15,000.
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Because the check was almost
in the, almost $80 to $90,000.
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But they charged an exorbitant
fee because they wanted to make
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sure that the check was real.
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They didn't know if it was
real or not, so they charged
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an exorbitant fee, and
she paid it. And she paid it!
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And now this
check cashing facility.
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In one store in Detroit
we were working with a bank
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and one of their
customers was a grocery store.
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And this bank estimated
that this grocery store,
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because of check cashing, is
earning a half a million dollars
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a year in fees alone. Wow!
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Not including produce,
none of that, just fees.
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Just fees! Okay, so
how does it work, alright?
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For those of us who've never
used a check cashing place.
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How does it work?
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Well, you have a job. Right.
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You don't have a
bank account. Right.
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You get paid. They
have to cut you a check.
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They cut the check to your name.
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You get the check. You
can't cash it because you don't
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have a bank account.
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So you go to the
check cashing place.
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So they charge a fee for the
convenience of you cashing the
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check at the
check cashing place.
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Now the thing to this is that
I've asked, and we've done many
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focus groups, and polls,
and we've asked many people,
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Why do you use this
check cashing place?
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And what... it's always;
they all say the same thing.
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That I just don't
know anything else.
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The liquor store is
right up the street.
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The Lottery store, when many
times they have check cashing
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in Lotto mix time.
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We're going to talk about
Lotto on the second as well.
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The checkout is
right up the street.
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There's this, there's a grocery
store that's right there.
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It's convenience. It's
nothing more than convenience.
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And they don't know any better.
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So what happens? Again, because
you have to cash your check
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at this check cashing place, you
don't have a banking account.
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You want to buy a house?
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Well, how are you going to
unless you buy a house in cash?
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Because you're not going
to be able to get a loan,
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because you don't
have a bank account.
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You're not bankable.
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You're not
improving your credit.
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You ever going to get a business
loan and start a business,
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and leverage, and do
what individuals in wealthy
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communities will do?
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They take out
leverage so they can...
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All these things are
not available to you.
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You are in a perpetual under
class because now you have to
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spend money to
use your own money,
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which is the
epitome of nonsense.
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And it's a
useless, pointless product.
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But they've taught us,
and negatively taught us,
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and influenced us to say
that there is no other way but
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to use this product.
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Because you're not good enough
to get your own bank account.
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So essentially, Ryan, if you're
giving me, you're paying me
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a hundred dollars, then
like what percentage of that
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would the check out?
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It would take five dollars.
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Five! So I might as well
take five dollars from that
00:09:21.99\00:09:24.56
and just rip it up.
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Rip it up. It's gone.
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Because that's the equivalent
of what I'm doing at a
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check cashing place.
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This is why it's
expensive to be poor.
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You, if you saw a check cashing
facility, would you consider
00:09:33.87\00:09:38.24
this to be a neighborhood
in Beverly Hills? No.
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Because they know that
that's not their market.
00:09:41.18\00:09:43.65
But when they're
outside of a Veteran base,
00:09:43.68\00:09:45.88
outside in Appalachia, and
urban America, rural America,
00:09:45.91\00:09:50.89
these places are the
places where you know what,
00:09:50.92\00:09:53.12
we're going to look for those
places with the lowest credit
00:09:53.15\00:09:55.62
scores, the highest
poverty rates, maybe having
00:09:55.66\00:09:58.99
some high crime areas.
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Because we'll just put a
glass, we'll put some glass up,
00:10:00.43\00:10:02.06
as long as we
can take their money.
00:10:02.10\00:10:03.43
It doesn't matter
about the lack of safety.
00:10:03.47\00:10:05.33
You know, I just
want their money.
00:10:05.37\00:10:06.70
And this is the
mindset that they have.
00:10:06.74\00:10:08.47
And they have an
invested interest.
00:10:08.50\00:10:10.27
If that person improves their
credit, gets a bank account,
00:10:10.31\00:10:13.24
and starts accumulating
wealth, they've lost a customer.
00:10:13.27\00:10:15.64
So, of course, they've got
to perpetuate that their product
00:10:15.68\00:10:18.71
is the only way, and is
actually a good product.
00:10:18.75\00:10:20.92
And they're going to consider
they're doing a good service.
00:10:20.95\00:10:22.28
Just as the rest of
these financial predators
00:10:22.32\00:10:23.85
will say the same thing.
00:10:23.89\00:10:25.22
They're doing a good service,
in their mind, to the community.
00:10:25.25\00:10:27.79
They have to say that because
they have a vested interest
00:10:27.82\00:10:29.56
in keeping people poor.
00:10:29.59\00:10:30.93
Uh hum. Wow, that's amazing!
and it's something that we know
00:10:30.96\00:10:34.36
And it's something that we know
people are using all the time.
00:10:34.40\00:10:39.43
All the time. All
the time. All the time.
00:10:39.47\00:10:41.24
And so the next one that we
have here is the payday loan.
00:10:41.27\00:10:44.34
Now the payday loan,
I've seen Montel Williams
00:10:44.37\00:10:47.68
advertising these on air.
00:10:47.71\00:10:49.84
And so a lot of times what
they'll do is we'll discuss.
00:10:49.88\00:10:52.61
They'll use these celebrities,
these stars, and they'll say,
00:10:52.65\00:10:57.62
Oh, Montel Williams, he was
a, I think, I believe he was a
00:10:57.65\00:11:00.36
Navy, and, you know,
Montel get out of my way!
00:11:00.39\00:11:03.53
Get him out to
the Williams show.
00:11:03.56\00:11:04.89
Well, Alli, well,
he's a trusted man.
00:11:04.93\00:11:06.26
And, you know, we
trust Montel Williams.
00:11:06.29\00:11:08.86
Well, what does the word say?
00:11:08.90\00:11:10.23
Cursed is the man that
trusteth in man, right?
00:11:10.27\00:11:12.47
So we're trusting in this man.
00:11:12.50\00:11:14.70
We're trusting
that this person does;
00:11:14.74\00:11:16.91
is going to do well for us.
00:11:16.97\00:11:18.34
So we follow this person.
00:11:18.37\00:11:20.24
So the payday
loans, they'll charge with.
00:11:20.28\00:11:22.14
You go to the loan and
you say, You know what?
00:11:22.18\00:11:23.65
I'm running a
little bit short on cash.
00:11:23.71\00:11:26.15
They'll say, Well, it
doesn't matter if you're
00:11:26.18\00:11:27.72
running short on cash.
00:11:27.75\00:11:29.08
Come on in here and
we'll give you a loan.
00:11:29.12\00:11:31.19
We'll give you some money.
00:11:31.22\00:11:32.55
We'll float you
till the next week.
00:11:32.59\00:11:33.92
You're living check to Tuesday.
00:11:33.96\00:11:35.29
We'll float you some money
to live the rest of the week
00:11:35.32\00:11:37.29
until your next check,
until your next payday.
00:11:37.33\00:11:39.76
So that person goes in and gets
the loan out, not knowing that
00:11:39.79\00:11:43.13
that person is being charged,
between fees and interest,
00:11:43.16\00:11:45.27
2 to 300 percent
interest rate on that loan.
00:11:45.30\00:11:48.10
Oh! 2 to 300 percent!
00:11:48.14\00:11:49.77
Absolutely! Absolutely!
00:11:49.80\00:11:51.64
And they're doing it,
and they're doing at Gold's,
00:11:51.67\00:11:54.24
and all these
Gold shops, you know.
00:11:54.28\00:11:56.14
And see this is why we have
to come back to Christ, right?
00:11:56.18\00:12:00.82
Because they're playing on what
the world thinks is important.
00:12:00.85\00:12:07.69
Right? Gold stores, pawn shops,
you know, the Gold stores that
00:12:07.72\00:12:11.76
are popping up in
neighborhoods everywhere.
00:12:11.79\00:12:13.13
Why? Because they recognize
that if a lot individuals
00:12:13.16\00:12:16.73
want that shiny object.
00:12:16.77\00:12:18.10
They want that, Oh,
wow, can I have that watch?
00:12:18.13\00:12:21.24
Or I've got to
have that jewelry.
00:12:21.27\00:12:22.60
I've got to have that ring.
00:12:22.64\00:12:23.97
And have all these
things that are meaningless.
00:12:24.01\00:12:26.31
They're worthless. But all of
a sudden they run out of money.
00:12:26.34\00:12:29.48
They have to pawn them.
00:12:29.51\00:12:30.85
So the Gold stores are popping
up so the people can pawn their
00:12:30.91\00:12:33.48
jewelry, and they can capitalize
off of individuals buying
00:12:33.52\00:12:36.38
jewelry that they couldn't
afford in the first place,
00:12:36.42\00:12:38.22
get the jewelry, and then
pawn it back to individuals.
00:12:38.25\00:12:40.92
And it's perpetuating poverty.
00:12:40.96\00:12:42.39
So wait, the Gold store is a
store that sells gold and then
00:12:42.42\00:12:46.80
also they can
pawn it? Absolutely!
00:12:46.86\00:12:49.00
Oh! Absolutely! They sell
it because it's a shiny object.
00:12:49.03\00:12:52.57
Right. They know that
individuals in poverished
00:12:52.60\00:12:54.77
communities, sometimes when you
have a level of individuals who
00:12:54.80\00:12:59.84
have not had a lot of capital,
have not had a lot of money,
00:12:59.87\00:13:02.61
who are poor, they
might be a little insecure.
00:13:02.64\00:13:05.15
So they attached
themselves onto these items:
00:13:05.18\00:13:08.58
this gold, these
brand name clothes.
00:13:08.62\00:13:13.25
Or, you know, these
shiny things, this jewelry.
00:13:13.29\00:13:15.82
And so they say, You know,
what I am now defined by what
00:13:15.86\00:13:18.86
I'm wearing, as opposed to what
Christ has put inside of me.
00:13:18.89\00:13:22.00
I'm now defined
by what I'm wearing.
00:13:22.03\00:13:23.57
So they'll buy it,
and they can't afford it.
00:13:23.63\00:13:25.63
But they know full well that's
why they put the Gold store
00:13:25.67\00:13:27.84
there, that those
individuals are going to
00:13:27.87\00:13:29.70
eventually have to pawn it.
00:13:29.74\00:13:31.07
So when they have to pawn it,
they'll buy it back at a cheaper
00:13:31.11\00:13:33.98
rate, and it's a circulate.
00:13:34.04\00:13:35.58
And then when that person
can finally get the money to get
00:13:35.61\00:13:37.61
it out of pawn, they're
going to sell it back to them.
00:13:37.65\00:13:39.65
So they're not only buying the
jewelry, but then they're making
00:13:39.68\00:13:43.12
more, they have to continue to
buy it over, and over, and over
00:13:43.15\00:13:46.19
again until they finally
lose it, and then that gold,
00:13:46.22\00:13:48.62
that ring or whatever
is sold to somebody else,
00:13:48.66\00:13:50.89
and it goes right
back into the circle again.
00:13:50.93\00:13:52.86
This is what they're
doing in our communities.
00:13:52.89\00:13:55.00
They are praying upon the
worldly desires of us to have to
00:13:55.03\00:13:58.73
get rich, of us to have an image
that fits with what the world
00:13:58.77\00:14:02.50
thinks is appropriate,
and what we're supposed to do
00:14:02.54\00:14:04.64
that we can't afford. Right.
00:14:04.67\00:14:06.68
And we can't
afford this lifestyle.
00:14:06.71\00:14:08.21
The next thing we have to go
back to the pay-day loan and get
00:14:08.24\00:14:11.18
additional money out,
pay the 200 to 300 per cent
00:14:11.21\00:14:13.01
interest rate, and the next one
we have here is the pawn shop.
00:14:13.05\00:14:16.28
Now story: I walk
into one of the largest
00:14:16.32\00:14:20.59
pawn shops in Detroit.
00:14:20.66\00:14:21.99
Now I actually reached out
to them for partnership because
00:14:22.02\00:14:24.43
I figured, I said, Listen,
I want to work with you all.
00:14:24.46\00:14:27.40
Because the people that you're
serving are the people that
00:14:27.40\00:14:29.96
I want to educate.
00:14:30.03\00:14:31.37
So is there
something that we can do,
00:14:31.40\00:14:32.90
that I can educate your people?
00:14:32.93\00:14:35.04
I'm laughing because I
don't think a pawn shop wants
00:14:35.07\00:14:38.71
to work with you, because
you're going to be teaching
00:14:38.74\00:14:40.54
people not to pawn their stuff.
00:14:40.58\00:14:41.91
I told them. I told them that.
00:14:41.94\00:14:43.31
I said, Look, I think it would
be good for community morale.
00:14:43.35\00:14:46.38
And they actually let
me do a couple of workshops
00:14:46.41\00:14:48.45
in the pawn shop. Really?
00:14:48.48\00:14:49.98
They sure did! I did a couple
of workshops in the pawn shop,
00:14:50.05\00:14:53.05
and educated them
about credit, and budgeting.
00:14:53.09\00:14:55.26
And I was very candid about
my goal was to make sure these
00:14:55.29\00:14:58.86
individuals who come
in here don't have to keep
00:14:58.89\00:15:00.53
continuing,
tends to come in here.
00:15:00.56\00:15:02.43
And so they took me on
a tour of this pawn shop.
00:15:02.46\00:15:05.00
They took me in the back room.
00:15:05.03\00:15:06.87
It was a huge facility.
00:15:06.94\00:15:08.67
And I saw these fur coats.
00:15:08.70\00:15:11.97
I said, What
are these fur coats?
00:15:12.01\00:15:13.38
Well, this is the gig.
00:15:13.41\00:15:16.54
The people who are mostly
poor will buy these fur coats.
00:15:16.58\00:15:21.62
Because you have to
have a fur coat, right?
00:15:21.65\00:15:23.42
Because that defines you.
00:15:23.49\00:15:24.89
Again, worldly standards
allow you to define you,
00:15:24.92\00:15:27.26
as opposed to what
Christ has given you. Right.
00:15:27.29\00:15:29.19
Worldly standards
are now defining you.
00:15:29.22\00:15:30.63
So you have to
have this fur coat.
00:15:30.66\00:15:31.99
You buy the fur
coat in the fall.
00:15:32.03\00:15:33.60
You wear it in the winter.
00:15:33.63\00:15:35.70
You pawn it in the spring.
00:15:35.73\00:15:37.70
You pay fees on it
throughout the summer.
00:15:37.73\00:15:40.44
You take it out in the fall.
00:15:40.50\00:15:41.84
And it goes on and on.
00:15:41.87\00:15:43.67
It's an endless cycle
that individuals who are
00:15:43.71\00:15:46.64
impoverished, who have to attach
themselves to this worldly item,
00:15:46.68\00:15:50.71
now are continuously
paying on this worldly item,
00:15:50.75\00:15:53.88
henceforth making that worldly
item even more and more pricey
00:15:53.92\00:15:56.79
to those who can't afford
it in the first place. Right.
00:15:56.85\00:15:58.95
There are televisions in there.
00:15:58.99\00:16:00.59
There was this one television
I saw in there it was in there
00:16:00.62\00:16:03.86
for over four years.
00:16:03.96\00:16:05.29
I calculated the fees, that the
fees on that television alone
00:16:05.33\00:16:09.23
was worth more,
almost twice as much
00:16:09.26\00:16:11.10
than the television
itself to buy brand new.
00:16:11.13\00:16:14.67
Let me just ask you
this, Ryan, because I have
00:16:14.70\00:16:16.64
never pawned anything. Right.
00:16:16.71\00:16:18.04
I don't know how
that works either.
00:16:18.07\00:16:19.74
I'm ignorant as far
as that's concerned.
00:16:19.77\00:16:22.24
I learned a lot walking through
that store, I'll tell you.
00:16:22.28\00:16:25.41
I would believe it.
00:16:25.45\00:16:26.82
So you take an item to
the store, and you're kind of
00:16:26.85\00:16:31.69
selling it to the store?
00:16:31.72\00:16:33.09
Well, essentially you have
an item, and let's just say you
00:16:33.12\00:16:35.46
have a shirt or whatever.
00:16:35.49\00:16:38.33
And this
shirt... No, a television.
00:16:38.36\00:16:41.20
So this television you
might have bought for $300.
00:16:41.23\00:16:45.47
And now you have...
You've been light on funds.
00:16:45.50\00:16:48.87
So essentially you take this
item to the pawn shop and they
00:16:48.90\00:16:53.84
might say, What's it worth?
00:16:53.88\00:16:55.74
We'll give you
$50 just to hold it.
00:16:55.78\00:17:00.85
And then if you can't you
have to make payments on it.
00:17:00.88\00:17:05.65
And then you have
to make payments on it
00:17:05.69\00:17:08.29
over and over again.
00:17:08.32\00:17:09.66
To pay back what
they gave you for it or?
00:17:09.69\00:17:12.73
They're holding it
in storage now. I see.
00:17:12.76\00:17:14.93
They're holding it now. Okay.
00:17:14.96\00:17:16.33
And so they're giving you a
loan against this television.
00:17:16.36\00:17:20.04
Right? And so don't mean the
loan, I'd say might not be $50,
00:17:20.07\00:17:23.84
but it might be as much as $150
maybe $200, but it's never going
00:17:23.91\00:17:26.47
to be as much as the
TV is actually worth.
00:17:26.51\00:17:29.41
Because they're going to want to
make sure they, if they have to,
00:17:29.44\00:17:32.01
turn around and sell
it and make a profit.
00:17:32.05\00:17:33.72
So they're never going to
give you what it's really worth.
00:17:33.75\00:17:36.05
So they might give you this
loan for $50, $100, maybe $150,
00:17:36.08\00:17:40.09
or what have you, and then now
you have this $150 that you take
00:17:40.16\00:17:43.32
and you pay towards
your rent, or whatever it is.
00:17:43.36\00:17:45.76
But you have to
pay that money back.
00:17:45.79\00:17:47.30
So over time after you pay that
money back, eventually maybe you
00:17:47.30\00:17:51.00
you get your, you
get your paycheck.
00:17:51.03\00:17:52.50
And you come back and you
get, you pay the money back.
00:17:52.53\00:17:54.70
You owe that plus interest.
00:17:54.74\00:17:56.67
And interest is usually
around, at least in Michigan
00:17:56.71\00:17:58.74
where I live, around 3%.
00:17:58.77\00:18:00.61
And they capped
it at 3% per month.
00:18:00.64\00:18:03.31
So it's not 3% a year.
00:18:03.38\00:18:05.25
They say, Well,
it's actually pretty low.
00:18:05.28\00:18:06.61
No, that's 3% times 12,
which is 36% interest rate.
00:18:06.65\00:18:10.62
Wow! Because every month?
00:18:10.65\00:18:12.62
Every month it's 3%, yeah.
00:18:12.65\00:18:14.09
3% added to the previous 3%?
00:18:14.12\00:18:16.69
Yes. And now there are different
laws in different states.
00:18:16.76\00:18:19.29
In Michigan they've
capped it out at 3%.
00:18:19.33\00:18:21.60
In many of the states
they've actually allowed that to
00:18:21.63\00:18:23.87
go even a lot higher.
00:18:23.90\00:18:25.23
There was legislation
that they tried to propose to,
00:18:25.27\00:18:27.54
and now get this, this
is very intriguing to me.
00:18:27.57\00:18:30.61
They proposed legislation to
raise the level of interest rate
00:18:30.64\00:18:35.31
up from what pawn
shops can actually charge.
00:18:35.34\00:18:38.28
Now there were a few pawn
shops that were the big ones
00:18:38.31\00:18:41.52
actually opposed them being
able to raise the interest rate.
00:18:41.55\00:18:45.52
Now you would say
that's the contrary to
00:18:45.55\00:18:47.29
actually be making money.
00:18:47.36\00:18:48.69
Well, no, because what happens
is this: they're banking on the
00:18:48.72\00:18:51.86
fact that they don't
want to gouge their customers.
00:18:51.89\00:18:54.20
They want their customer
to be a repeat customer.
00:18:54.30\00:18:57.57
And this is verbatim
of what they were saying.
00:18:57.60\00:18:59.13
They want their customers
to be repeat customers.
00:18:59.17\00:19:02.20
Because as long as they continue
to come back they can continue
00:19:02.24\00:19:04.51
to make that residual
income from their individuals.
00:19:04.54\00:19:07.14
So they don't want to gouge
them out to make sure that,
00:19:07.21\00:19:09.44
to make John or Susan so
strapped for cash that they
00:19:09.48\00:19:13.11
can't afford to
continue to come back. Right.
00:19:13.15\00:19:14.98
They want them to come back.
00:19:15.02\00:19:16.35
They want them to pawn more
items; come back so they can
00:19:16.38\00:19:18.25
continue to make them collect
that interest rate from these
00:19:18.29\00:19:21.46
individuals over time.
00:19:21.49\00:19:23.02
And that is the way
they sustain their business.
00:19:23.06\00:19:25.26
It's a multi-million
dollar business model based upon
00:19:25.29\00:19:27.60
the fact that we are not
budgeting, we're not improving
00:19:27.66\00:19:30.97
our credit to make sure that
we can get legitimate loans,
00:19:31.00\00:19:33.34
and we're buying things
that we can't afford. Right.
00:19:33.37\00:19:36.57
So all of these
things are Scriptural.
00:19:36.60\00:19:38.51
And if we just follow the
Scripture all these things
00:19:38.54\00:19:42.68
would be closed down.
00:19:42.71\00:19:44.05
I mean the next item
that we have here is the
00:19:44.08\00:19:45.98
refund anticipation loan, RAL.
00:19:46.01\00:19:48.92
Now every tax season this is
something else, right? Uh huh.
00:19:48.95\00:19:53.05
This is funny to me because
in many you have the, you know,
00:19:53.09\00:19:59.16
many different tax
firms and what not.
00:19:59.19\00:20:01.80
They'll charge these refunds.
00:20:01.83\00:20:03.16
They call them Rapid Refi.
00:20:03.20\00:20:04.53
And they'll say you can
get your money right away.
00:20:04.57\00:20:06.94
And that sounds
really good. Right.
00:20:07.00\00:20:09.00
Oh, you know, I can
get my money right away.
00:20:09.04\00:20:10.91
But what they're not telling
you is that if you get your rate
00:20:10.94\00:20:14.58
refund anticipation loan you go
in there and let's just say you
00:20:14.61\00:20:18.28
get an estimate tax
return of a thousand dollars.
00:20:18.31\00:20:21.98
That's an
estimate, or a guesstiment.
00:20:22.02\00:20:24.32
They're guessing how much return
you're going to get from looking
00:20:24.35\00:20:28.06
at your paperwork. Right.
00:20:28.09\00:20:29.42
So they say, Here's a
thousand dollars right now.
00:20:29.86\00:20:33.03
You can have it and
you can walk out the door
00:20:33.06\00:20:34.36
with that thousand dollars.
00:20:34.40\00:20:35.73
Sounds like a good deal.
00:20:35.76\00:20:37.10
So many individuals say,
Sure, I'll take it right now.
00:20:37.13\00:20:38.87
I'd rather have my
money now than later.
00:20:38.90\00:20:40.70
They're not saying
it's also attached to fees,
00:20:40.77\00:20:42.97
it's also attached to interest
to the tune of almost 4 to 500%.
00:20:43.00\00:20:46.61
In many, sometimes to
almost 300%, but sometimes
00:20:46.64\00:20:49.98
as much as 4 to 500%.
00:20:50.01\00:20:51.48
I've actually seen.
00:20:51.51\00:20:52.85
How can that be legal, and who?
00:20:52.88\00:20:55.15
See, this is what blows me away.
00:20:55.18\00:20:57.32
Because we put politicians into
office to protect our interests.
00:20:57.35\00:21:02.89
Right. Whose
interest is that; 4 to 500%?
00:21:02.92\00:21:07.40
They do have these
things called usury laws
00:21:07.40\00:21:08.86
that are on the books.
00:21:08.90\00:21:10.23
But many politicians
don't follow the usury laws,
00:21:10.27\00:21:12.57
because a lot of the
biggest lobbying firms are those
00:21:12.60\00:21:14.84
individuals who are these
payday loans, cash advances.
00:21:14.87\00:21:18.71
And these individuals, who
many individuals who used to be
00:21:18.74\00:21:21.28
in office, when they left
office went to work for these
00:21:21.31\00:21:24.98
institutions making all
this capital that they were
00:21:25.01\00:21:27.95
exploiting
individuals who are poor.
00:21:27.98\00:21:29.38
So it's a circle, it's a circle.
00:21:29.42\00:21:31.82
So for those individuals
who are using check cashing,
00:21:31.85\00:21:35.32
obviously the solution
is to get a bank account.
00:21:35.36\00:21:37.73
For those individuals who
are using the payday loans,
00:21:37.76\00:21:40.66
we have to learn how
to budget effectively.
00:21:40.70\00:21:42.63
For those individuals who
are using a refund anticipation
00:21:42.66\00:21:45.27
loan, we have to
understand the beautiful thing
00:21:45.30\00:21:48.10
about electronic deposit.
00:21:48.14\00:21:49.67
And the beautiful... Now what
that means is this: there's,
00:21:49.70\00:21:52.61
they didn't, for that
individual who got that thousand
00:21:52.67\00:21:55.54
dollar loan, real story.
00:21:55.58\00:21:57.01
Someone got a thousand
dollar loan, or Rapid Refi.
00:21:57.08\00:22:00.42
Got the money, then she got
her actual tax return for $500.
00:22:00.45\00:22:06.09
So it wasn't $1000.
00:22:06.12\00:22:07.76
It was only $500, because
remember it was a guesstament.
00:22:07.79\00:22:10.03
It wasn't the actual thing.
00:22:10.06\00:22:11.39
So she got a $500
loan, no $500 tax return.
00:22:11.43\00:22:14.93
She goes in and says,
Okay, well, I spent my money
00:22:14.96\00:22:18.37
and here I'm
trying to get it back.
00:22:18.40\00:22:20.34
Well, you
actually owe $1300 now.
00:22:20.40\00:22:22.24
You know, because
at that particular firm
00:22:22.27\00:22:24.21
it was a 300%
interest rate, and the fees
00:22:24.27\00:22:26.17
had already tacked up.
00:22:26.21\00:22:27.54
Well, you owe us $1300.
00:22:27.58\00:22:28.91
Well, I don't have the money.
00:22:28.94\00:22:30.71
I only got $500.
What am I supposed to do?
00:22:30.75\00:22:32.55
Well you're on the hook.
00:22:32.58\00:22:33.92
I don't know what, but
you have to pay it back.
00:22:33.98\00:22:35.32
Now she's in the cycle.
00:22:35.35\00:22:36.69
She's in the cycle and you have
to pay off as much as you can,
00:22:36.72\00:22:39.79
and whenever you can.
00:22:39.82\00:22:41.16
But that tally is always going.
00:22:41.19\00:22:43.59
It's always going,
and it keeps you...
00:22:43.63\00:22:45.49
The number one thing that keeps
payday loans and refundages
00:22:45.53\00:22:48.73
to patient loans and
business is returning customers.
00:22:48.76\00:22:51.20
They are banking on the
fact that you cannot pay that
00:22:51.23\00:22:53.67
entire amount back.
00:22:53.70\00:22:55.04
Because they want you to
come back and continue them,
00:22:55.07\00:22:56.44
and pawn shops as well.
00:22:56.47\00:22:57.81
They want you to keep
continuing to pay for this
00:22:57.84\00:23:00.78
additional amount of money.
00:23:00.81\00:23:02.14
How? That is so stressful.
00:23:02.18\00:23:04.38
Like, first of all, you have to
read the fine print. Absolutely.
00:23:04.41\00:23:09.05
Right? Because you're
signing something that's saying,
00:23:09.08\00:23:11.82
or I'm going to pay you back
plus 3, 4, 500 times interest?
00:23:11.85\00:23:17.13
Yep, exactly. I can't even...
00:23:17.16\00:23:18.73
I had a friend that
did something similar.
00:23:18.76\00:23:21.16
Uh huh. Needed some extra money.
00:23:21.20\00:23:23.33
Did that and got... They charged
him so much for interest that he
00:23:23.43\00:23:31.37
can't get out from under it.
00:23:31.41\00:23:32.74
It's just... it,
you can't get out.
00:23:32.77\00:23:35.28
This is what, what ails
me, what gets me so frustrated
00:23:35.34\00:23:40.32
is that we continue
to use these stores.
00:23:40.38\00:23:42.28
And many individuals
get mad about these stores,
00:23:42.32\00:23:44.35
but they refuse to do the things
that are necessary to help.
00:23:44.39\00:23:48.76
If they don't, if you
learn, if you already know the
00:23:48.79\00:23:51.13
principles yourself, then
educate someone else about
00:23:51.16\00:23:53.46
how they can use the principles.
00:23:53.50\00:23:54.86
Because the bottom line is I
can't keep getting mad at the
00:23:54.93\00:23:57.40
shark for coming after
me if I keep cutting myself
00:23:57.43\00:24:00.24
and jumping in the ocean.
00:24:00.27\00:24:01.60
A shark is going
to always come around.
00:24:01.64\00:24:03.20
They're
attracted to blood. Right.
00:24:03.24\00:24:05.01
This is what they do. Right.
00:24:05.04\00:24:06.37
If we stop cutting
ourselves it's from an ocean.
00:24:06.41\00:24:08.61
Then they're
not coming after us.
00:24:08.64\00:24:10.25
And then we can talk
about the Lottery tickets.
00:24:10.28\00:24:12.88
Lotto, Lotto is a 70
billion dollar industry,
00:24:12.91\00:24:15.48
billion dollar
industry. Billion!
00:24:15.55\00:24:17.79
There is one zip code in
the south side of Chicago,
00:24:17.82\00:24:20.49
one zip code that spends
over 23 million dollars a year
00:24:20.56\00:24:23.16
just on Lotto tickets.
00:24:23.19\00:24:24.53
In the south side? That's
one of the poorest sections.
00:24:24.56\00:24:28.13
Yes, one zip code. 23
million dollars a year on the
00:24:28.20\00:24:32.10
south side of Chicago.
00:24:32.13\00:24:33.50
There, and now on an
average, each adult in America
00:24:33.54\00:24:36.30
spends $300 a year.
00:24:36.34\00:24:37.67
Now there's a positive
coorelation between the amount
00:24:37.71\00:24:40.04
of money spent on Lotto
tickets, and poverty rate.
00:24:40.08\00:24:43.24
So the deeper you are
in poverty, the more you
00:24:43.31\00:24:46.01
spend on Lotto tickets.
00:24:46.05\00:24:47.38
On average an individual
earning $13,000 or less,
00:24:47.42\00:24:50.75
almost spends between 9
and 10% of their total income
00:24:50.79\00:24:54.26
on Lottery tickets on average.
00:24:54.29\00:24:56.39
So $13,000 would be $13 hundred
for them on Lotto tickets.
00:24:56.46\00:25:02.30
Yes, on average, and
on across the country.
00:25:02.33\00:25:04.17
So you, what's happening now
is this is why we need Christ.
00:25:04.20\00:25:08.34
Because people are
more dependent on luck.
00:25:08.37\00:25:11.94
They look towards luck
more so than what God has given
00:25:12.51\00:25:17.65
them to be successful.
00:25:17.68\00:25:19.01
So as long as you're
looking towards luck,
00:25:19.05\00:25:21.35
and every time they do that
scratch off, which is liable to
00:25:21.38\00:25:23.59
return with a Lotto
ticket about 67 cents.
00:25:23.62\00:25:25.82
For every dollar you
spend you get 67 cents.
00:25:25.85\00:25:27.99
So you're losing 33 cents
every time you spend a dollar on
00:25:28.02\00:25:30.33
a Lotto ticket on average.
00:25:30.36\00:25:31.69
So they're
scratching that Lotto ticket.
00:25:31.73\00:25:33.50
They're doing that,
and they're banking on
00:25:33.53\00:25:35.43
the fact that they can win.
00:25:35.46\00:25:36.83
So, and then
lastly, on line scams.
00:25:36.87\00:25:38.97
You have to talk
about that briefly.
00:25:39.03\00:25:41.44
The bottom line is this.
00:25:41.50\00:25:43.30
I want to just give some tips.
00:25:43.37\00:25:44.71
And I want to talk
directly to the people.
00:25:44.74\00:25:46.07
Because our Lottery is just...
You all, people are getting
00:25:46.11\00:25:48.44
all these scams, this
Western Union scams. Listen:
00:25:48.48\00:25:51.45
If we just used those four tips
than all this fraudulent stuff
00:26:19.24\00:26:23.35
this scam, all this
stuff, will be null and void.
00:26:23.38\00:26:26.35
This is so rich. I wish
we could do another part.
00:26:26.38\00:26:30.82
I'm serious, because there's
so much going on with this.
00:26:30.89\00:26:35.29
But you have a take away for us.
00:26:35.32\00:26:37.03
Absolutely!
Let's go talk about it.
00:26:37.06\00:26:38.39
Yeah, for real. Uh huh.
00:26:38.43\00:26:39.76
Proverbs 4:13 says,
Keep hold of instruction.
00:26:47.10\00:26:50.21
Do not let go. Guard
her for she is your life.
00:26:50.27\00:26:53.34
What is the most precious
commodity in our communities?
00:26:53.38\00:26:55.64
Many will say it's
money, or perhaps time.
00:26:55.68\00:26:57.68
Unfortunately, for
those who exploit poor people,
00:26:57.71\00:27:00.35
ignorance is the
most precious commodity.
00:27:00.38\00:27:02.35
I'm ignorant of many things.
00:27:02.38\00:27:04.02
I couldn't tell
you how a rocket flies,
00:27:04.05\00:27:05.82
or how to build a car engine.
00:27:05.85\00:27:07.19
However, when it comes
to knowledge about important
00:27:07.22\00:27:09.42
issues that can
improve our economic standing,
00:27:09.46\00:27:11.49
there is nothing
wrong with being ignorant,
00:27:11.53\00:27:13.43
but there is something
wrong with staying ignorant.
00:27:13.46\00:27:15.40
So what truly is the
most precious commodity
00:27:15.43\00:27:17.57
in our communities?
00:27:17.60\00:27:18.93
It certainly isn't ignorance.
00:27:18.97\00:27:20.30
It is love. The Bible states
our love must not be a thing of
00:27:20.34\00:27:22.87
words and fine talk, but must be
a thing of action and sincerity.
00:27:22.90\00:27:26.34
1 John 3:18, We say we love our
community, but if our actions
00:27:26.37\00:27:30.25
were in line with
what we were saying,
00:27:30.28\00:27:31.68
than these
establishments wouldn't be
00:27:31.71\00:27:33.28
allowed to exploit us.
00:27:33.31\00:27:34.65
Our communities are stronger,
smarter, and better than what
00:27:34.68\00:27:37.49
these predators
perceive us to be.
00:27:37.52\00:27:39.19
So let's take action.
00:27:39.22\00:27:40.56
Stop using these establishments.
00:27:40.59\00:27:42.09
Improve your credit.
00:27:42.12\00:27:43.46
Open bank accounts.
00:27:43.53\00:27:44.86
And you will see them
start to shut down without even
00:27:44.89\00:27:46.70
a need for a protest.
00:27:46.73\00:27:48.03
As always, if we at
Dollars & Sense can help you,
00:27:48.06\00:27:51.13
please email me at:
00:27:51.17\00:27:54.84
Or chat with us on the Dare
to Dream Network Facebook page.
00:27:54.87\00:27:57.71
Until next time, be the change
you want to see, and remember
00:27:57.74\00:28:00.81
the purpose of life
is a life of purpose.
00:28:00.84\00:28:03.14