Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-11-22
Amount

While the interest rates charged by
these companies are unreasonably
high, perhaps the most INSCRIPTIONS
part of the business is the manner in
which the borrower is bounded for
payments and forced to lose his job
if he does not settle promptly.
Take an instance of man down
and out" for the time being and in
need of an immediate loan. He is at
tracted by the advertisement of the
salary loan company or perhaps he
receives a letter from one of the COM
panies, so worded that it makes a par
ticular appeal to his case. Money OBJ
tanned quickly, confidentially and
without disclosure" Come and get all
the money you need" Money is yours
for the asking" read the attractive
notices and the man who needs the
money sees an easy way out of his
difficulty. But before he gets the loan
he makes an assignment of his wages
and signs over the power of attorney.
The papers signed by the borrower
are similar in the cases of the differ
emit companies. The application
blank, bill of sale of salary, and
power of attorney are the three legal
documents which are always signed
unless the power of attorney is so
worded the signature to the bill of
sale is unnecessary. In a few cases
the loan company requires the Dor
rover to sign a number of notes, one
for each payment, also several blank
papers which are to be filled out later.
These blank papers when filled out
constitute an assignment of wages and
are served upon the employer in case
the employee fails to met his payments.
In one office Mr.. Wassam saw four
of these blank papers which had been
signed by an applicant. The manager
In 11T In
case the borrower refused to pay.
It would seem a man with ordinary
intelligence would refuse to sign a
blank paper giving the loan company
the power to fill it out later; it would
seem also he would refuse to sign the
power of attorney which in the MAJ
jority of cases is most binding. AS
rule, however, there Is no objection
on his part.
Take an instance of a loan made in
New York through the office of H. A.
COPYRIGHT, a salary loah man located
in Providence, R. l., and having
branch offices in several large cities.
The borrower receives a check from
H. A. COPYRIGHT of Providence, r. l.,
and enclosed with the check is a MEM
orandum stating that COPYRIGHT has
bought a certain number of notes
giving the amount of each and date
by the attorney whom the borrower
authorized to sign his name to any
legal document by signing the power
of attorney. The borrower does not see
the notes signed by the attorney and
therefore has no idea of what they
contain. Each of these notes signed
by the attorney contains the follow
ing clause:
Interest from and after date of
maturity, two per cent per month or
fraction of month; also, This note is
one of a series dated this day and
signed by me, and ] agree that If
this, or any one of said series, is not
paid by me, on the date when due,
each and every one of said notes
becomes forthwith due and payable
on said date of first default" The
notes are payable in Providence, and
if the borrower succeeds in getting the
money to Providence each week on
time, when the notes are paid the debt
is Cancelled. If, however, the money
fails to reach the office of H. A. Court
right upon the date when the note be-
comes due, according to the clause in
the note all of the series become due
Immediately, and a protest fee and
also a collection fee are due upon
each note. This occurs so frequently
that one is inclined to believe the
protest fee and the collection fee are
only devices used to collect a higher
rate Of interest on each loan.
An important parsonage In the salary
loan office is the tracer" whose bust
ness It Is to hound a borrower who has
lost his position through an assignment
Of wages. The thoroughness with which
] this spy follows his victim Is illustrated