Former Payday Lender Offers Apology as Vote to Cap Interest Rate Nears

Council member Marion Barry (D-Ward 8), who co-sponsored the bill with Cheh, said that he does not want to put the stores out of business and would like to implement changes to prevent the cycle of debt. Barry, who voted against the bill in committee and abstained in the initial council vote, said he wants the council to consider an alternative to the pending legislation. He said other adjustments, such as an extended payment plan and limits on fees, could improve the industry.

But Cheh said such changes are "costume jewelry" and would not alter the industry. Blakely and two other former Check 'n Go employees said the fees would pile up because loans would be worth much more than a borrower's pending paycheck, and borrowers would have difficulty repaying the loans within two weeks.

Micheal Donovan, who recently resigned as a district director and who managed Check 'n Go operations in the city, said: "We virtually guarantee customer retention by encouraging customers to borrow up to 85 percent of their gross income. That is, more money than they actually receive in take-home pay."

Repeat customers are part of the business model, he said. "It is the basis for bonuses. It is the basis for store payroll budgets."

Blakely, Donovan and Bill Harrod, a former store manager, said they were ashamed to have been a part of the payday lending industry. "I could no longer continue exploiting customers, making hard lives harder," said Donovan, who worked at Check 'n Go for a year.

Blakely, who said he worked at Check 'n Go from February to August, said he was trained to be friendly with customers and to keep them coming.

"Stacey meant two things to me," Blakely said. "First, keeping him on my customer list added roughly $20 to my quarterly bonus. Second, keeping him on my customer list also meant I could maintain the payroll budget at my store. . . . I owe people like Stacey a big apology because I abused them and I insulted their intelligence."

Brown, 43, said he did not realize how much money he had spent. He just saw it a no-hassle loan. "It was easy. You didn't have any credit checks," he said.

But he said he regrets having spent nearly $15,000 over the past six years. His advice to others: "Get out of it. Quick."