Replace payday lenders with the post office?

[Kimura]

So do I. Again, we're talking USPS, they aren't supposed to be run for profit, since the government doesn't need to make a profit off its own fiat. We're talking public purpose, not a for-profit enterprise.

Using your argument, we should also privatize the DOD and military since they lose $$$$ left and right.

Using your argument stamps should be free. I understand what you are saying but saying that a federal service must charge less than cost does not make sense.

Especially since the USPS is not a government service. You folks should pick up a book.

It's one the few government agencies clearly authorized in the US Constitution.

 

[Politico]

Again.....book.

 

[RandomVariable]

Again.....book.

Can I get it from a public library?

 

[Quantum Windbag]

The USPS isn't supposed to be profitable, nor is any part of the public sector for that matter.

I like the fact I can send a letter anywhere in the US or its territories for 46 cents. Or the fact I can mail out packages - up to 70 pounds - in flat rate boxes. Don't you?

Also, using the USPS as a service to replace the pay-day lending crowd is an AWESOME idea. These predatory outfits needs to go anyway.

I can send the same package, for less, using FedEx.

No you can't, it depends. USPS Priority Mail, and it's other delivery options, are some the best priced in the business compared to FedEx, UPS, and DHL.

The rates are often less when you compare Flat Rate to One Rate, but often is not always. Since I said I can do it, and it is actually possible, I am right.

Then again, I actually chose my words to catch the idiots.

 

[JimmieD]

Link? I swear, some of you people sound like you have a person interest in misrepresenting the facts.

I thought saying I was looking at the payday lenders QC Holdings and Cash America would have been enough for someone interested in checking their 10-Q's. Do you need me to guide you to their investor relations site and SEC filings?

Cash America has $2 billion in assets, a debt to equity ratio of 64.5%, and is sitting on $820 million in working capital. Yeah, my heart bleeds for them too.

(A link would have been nice. Form S-4)

Using Cash America's latest quarterly statement (their 10-Q):

(1) A third of their assets are in the form of goodwill. Another third of their assets are in the form of pawn loans, consumer loans and receivables. Actual liquid assets ($64 million) only account for 3% of total assets. Their current liabilities are $187 million. So their abiliity to cover just their short term liabilities is totally dependent on the pawn loans, consumer loans, and receivables being paid.

(2) Becuase of this and the fact that most of their loans will not be repaid, Cash Advance, like most other payday lenders, sets aside large amounts of loan loss provisions. About 60% of their operating cash is provided by loan loss reserves. Their loans suffer large amounts of not being repaid. Compare this with someone like Wells Fargo where less than 1% of operating cash comes from loan loss reserves. Wells Fargo and other large banks don't make the risky loans that payday lenders do.

(3) About 20% of Cash Advance's loans are delinquent (which it defines as missing one payment) and charged off after 60 days. Compare this to someone like Wells Fargo's consumer loan portfolio where the percentage of delinquencies 30-60 days overdue is about 1% and their is still a recovery rate after a loan is > 60 days delinquent.

Payday lending is not what I would classify as a good business. It's an extremely risky and undercapitalized business with thin profit margins. Simply staying in business requires a high degree of efficiency. I'm still not sure why it's good for the taxpayers to enter into this business through the post office, especially given that the post office has no experience in this arena. And what's worse is that the interest rate on these loans should be lower? Hardly - unless you like losing money.

 

[SwimExpert]

 

[Dot Com]

guess who is against this? Quelle surprise!!! the banking *cough* "industry"

Post Office Could Rack Up Billions By Offering Money Services : NPR

But the banking industry is dead set against the post office getting into its business.