Wal-Mart to Offer Payday Loans to Employees

Dec 10, 2013
Company Creates Lender Instead of Raising Pay

walmart_5Walmart announced plans today to create its own payday loan business to support its financially strapped employees.

In a press release posted on its website, the nation's largest retailer said that it decided to launch the service after hearing complaints that workers often have trouble paying their monthly bills.

"It has recently come to our attention that our valuable associates sometimes just can't make ends meet," the statement reads. "That's why we're creating Walmart CashNow, a payday lender available exclusively to Walmart's 1 million hourly employees.

"CashNow will help our associates get cash when they need it most at a competitive interest rate. Finally they can borrow money to pay for things like rent, gasoline, food, medical bills and child care.

"Economic studies have consistently shown that access to credit is one of the driving forces in allowing the working poor to escape poverty. By providing these loans, Walmart is helping our associates reach the next level of success."

Always Low Wages

Payday loans are small, short-term loans typically used to help low-income workers meet expenses between their paychecks. They have become ubiquitous in recent years, but are often criticized for their high interest rates and predatory marketing practices.

Although Walmart says it is protecting its employees by creating the new lender, it admits that CashNow is also expected to be highly profitable.

"We got a million people who would give anything to be able to pay their bills on time," says Walmart's human resources chief. "Obviously, our first thought was there is huge money to be made off of this. We estimate that at an interest rate of 2,900 percent APR we can bring in $10 billion a year loaning money to our own workers.

"But the best part is that because we already employ them, our associates will also be able to work off the interest rather than pay in cash. That’s a win-win. Financial flexibility for them, and cheap labor for us."

"This is completely outrageous!" says veteran union leader Edward Asner. "Employees will now be indebted to their employer with no possible way out. That is not a job, it’s slavery. If they're so worried about their workers not being able to pay their bills, why don't they give them a raise?”

Not surprisingly members of the Walton family - who remain major shareholders in Walmart - disagree with that analysis.

“Look, no one is forcing anyone to do anything," says Jim Walton, who inherited his fortune from Walmart founder Sam Walton. "You don’t have to work here and you don’t have to get an advanced pay day loan with a reasonable interest rate. These folks simply need to be more responsible in regards to spending their money.

"For example, when my family flew down to Miami for a nice get-a-way weekend last week, we could have booked several very nice executive suites at the Fontainebleau. But we didn't. We got regular suites facing the ocean and ordered the crab instead of the lobster from room service.

"To be honest, I think a lot of these folks just need lessons on living a frugal lifestyle. I mean do you really need food for yourself and for your dog? Do you really need to be treating both your heart disease and your hemorrhoids?

"Life is all about choices. And I think our employees need to start making better ones. Take this hotel for instance. I would highly recommend our associates check into a standard cityview room. It starts at only $1,200 a night."

  • Bob

    Have you heard about the Wal-Hovels? Its the new housing program.

  • Maikeli To’a

    Company Store?

  • ORAXX

    Good lord, don’t be giving these people ideas!!

  • Random

    And what about all the other people in the country that do not work at Wal-Mart and cannot pay their bills. They should be making it work just like the rest of us.

  • Andrew

    This is a joke.

  • billy

    this whole website is a joke… in case you couldnt figure that out by reading ANY post.

  • kenlinkMD

    Gee, I was thinking that maybe Walmart was going to help the workers sign up for Food Stamps and other Welfare benefits (on company time) to help ends meet. God love the Walton’s for caring about their workers and allowing them access to their Billion of dollars at a fair interest rate (say about 400% plus a small fee of about $25.00). I guess I will have to stop calling the Walton’s and Walmart greedy. (NOT)

  • JimVancouver

    Pay low wages and minimum hours, then loan money that guarantees they will want to “work” to pay back the interest, then cut another employees hours so this employee can work for free, then the other employee will need to get a loan…..great system if you don’t care about your humans….sorry I mean workers.

  • Christopher,

    It is funny because this is describing indentured servitude, and it actually sounds like an idea they would do. Also please remember that this is a comedy website.

  • Squid Burns

    Thanks for ruining Christmas…

  • gregkliebigsr

    HEY, WAL-MART, WHY NOT GIVE THEM A RAISE TO $15.00 AN HOUR LIKE ALL THE BURGER DOODLE JOINTS!??!

  • Guest

    Just grand. Another way for Walmart to get out of paying more wages. I’m curious as to how this helps anyone, especially if they continue to cut wages.

  • Chris

    Just grand. Another way for Walmart to deny paying higher wages. I’m curious as to how this helps anyone if they continue to cut hours! Which, ( now that were on the subject) is imminent after Jan. 1st!

  • Luis Alfredo Martinez

    Is this SOB being sarcastic or is this idiot brain dead, if he is being sarcastic it goes to show you what disdain he has towards his employees..

  • d.d

    I work for and you are such a asshole and out of touch of reality. Why don’t you pay your self 7.45 per hour at 35 a week and see if you can pay your bills on time. I bet you could not survive a few months before you go back to your billions. Your are so out of touch how the common people live………

  • Luis Alfredo Martinez

    Random, your are a damn idiot, I bet that you do not get paid minimum wages, right?

  • Lougar

    Is this article for real? Gosh maybe those wall mart employees should stop booking rooms at the Fountain Blue. Is this idiot that obtuse?

  • kissyface

    oh great. instead of raising wages we are going to loan our employees money and charge them interest so we make even more money off our exploitation. brilliant

  • Lougar

    I done owe my soul to the company store. They used to do this to miners. It’s illegal. If you feel so bad how about paying livable wages? Whoooo what an idea?

  • jackie

    This has got to be a joke??? This is what the old textile mills in the south did, years ago. Get your people so in debt to you that they are virtual slaves for life. Please this really has to be a joke..

  • Darlene Baker

    why can’t you just give your employees a raise? I cannot believe the greed of this company. You are what is really wrong with this country. You feed on the hardships of your employees and all you care about is the money you’re gonna make off from this. When the new Meijer store opens in my town I WILL NEVER AGAIN SET FOOT IN A WALMART STORE FOR THE REST OF MY LIFE. You are a rotten to the core company.

  • kab2rb

    Ya Wal-Mart Payday loans legalized loan shark. I read what the heir to Wal-Mart Jim Wal-mart, he is a joke. He is living like a king and treats workers as slaves.

  • Sean Denninger

    The first part of the article did get my attention, but once i read about the lobster… I knew it had to be a joke. The biggest problem is it’s not hard to believe walmart would want to do this.

  • Don Richardson

    OMG! First they put their employees in a position of near poverty by paying them so little, and now want to profit even more by charging them interest to obtain the money they need to just get by. Now the people will be getting minimum wage minus the interest on their payday loan. This is despicable corporate greed.

  • Don E. Latham

    Why don’t they pay these employees a little more? I’m quite sure they could afford it.

  • Rhonda Perez

    Ok, so Jim Walton and his family rented a cheaper hotel and ordered crab instead of lobster from room service while his employees struggle to pay rent. It is true that nobody is forcing them to work there at Walmart, but son of a gun, RAISE THEIR WAGES YOU GREEDY DRATSAB!!!!!

  • Don E. Latham

    Or maybe the Walmart bunch could pay them a decent living.

  • scott5063

    It’s called satire people. The story isn’t real although it was a common practice in factories and mines in the late 1800’s and early 1900’s, instead of loaning money they had houses and stores their employees could use and get credit at, they would then be in debt to the company they worked. Labor unions and better laws to protect workers helped end this practice.

  • Alonglongway

    2,900% APR? I’m not sure that qualifies as low interest.

  • chris

    i think the walton family should be shot!!!

  • Jon Adams

    After all, Americans are competing with people who live in cardboard boxes.

  • Jon Adams

    comedy website? hard to say? I once made a joke about Republicans wanting to investigate every miscarriage as a possible homicide.

  • Jon Adams

    too painfully CLOSE to reality.

  • Jon Adams

    but TOMORROW we will find out that it is for real.

  • Greg PJR

    for the clueless

    This is a satire.

    Walmart isn’t capable of putting their employees almost first like that.

  • Spencer_Eden

    That’s right, factor your paychecks through WalMart. So you only get 90% of your check. On the gross or the net? What a scam to further rape the employees.

  • Jonathan Erickson

    In other news Ancestry.com has revealed that Nucky Thompson is related to Tony Soprano.

  • Z54

    Preyday loans from WalFarts. I’ll bet Hillary Clinton suggested it when she was on WalFarts board of directors!

  • William Harper

    I think you are right. Let’s boycott!

  • Johnny Whiteeagle

    so lets see I get lets say 300 a week and I need 400 so I borrow it from my boss and pay it back next week so now next week I only have 200 so I borrow 200 from my boss to cover expenses and the next week I only have 100 etc.
    kind of like the old miners of song who owe their soles to the company store

  • Johnny Whiteeagle

    why not just buy them a house with utilities included and let them shop at Wal-Marts for free and pick them up with the company bus

  • Johnny Whiteeagle

    I don’t think that can be done though as it is Communism

  • Dale Litsey

    In other words they will probably never see their paycheck…

  • horseofcorff

    Hilarious. Even more hilarious is watching every libby posting and reposting this as news.

  • darioqqo948

    my Aunty Molly got a
    2012 Cadillac CTS Sedan from only workin online… look these up B­i­g­2­9­.­ℂ­o­m

  • Einstein

    I can see it now, TV commercial with Pea Picking Tennessee Ernie Ford’s Sixteen Tons for a soundtrack.

  • Stephen Turpin

    http://www.youtube.com/watch?v=L2tWwHOXMhI
    I OWN MY SOUL TO THE COMPANY STORE

  • http://howbadtherecord.blogspot.com/ Gary E

    “You don’t have to work here and you don’t have to get an advanced pay day loan with a reasonable interest rate. And you don’t have to shop there either.

  • Anthony Edwards

    Dont give them any ideas. Im surprised they dont pay them in walmart bucks which can only be used at walmart. kinda like the old mining towns

  • Regina1959

    This has got to be a joke? Right? If not, that’s like rubbing salt into the wound. If they’re so profitable, why not give employees better pay? It’s absurd and would wish the entire chain of workers went on strike at the same time in order to get the attention of all Americans to their plight. Well, this strikes another blow for me NOT buying in their stores. This is totally unbelievable and outrageous!

  • FalconTypo

    While it’s a step, you’re right: INSULTING.

  • http://www.fastpaydaycashadvanceloans.com/ Warren Stephen

    Amazing, I appreciate you sharing and work. Keep it up !

  • http://www.fastpaydaycashadvanceloans.com/ Warren Stephen

    This is such a fantastic piece of information. Its gonna really help those people who are finding it tough to go for online payday loan. Thanks a lot

  • Soo

    The quote is satirical, not serious and probably not even real. Although it isn’t all that far from the truth

  • Scott JAmes

    damn I really needed a pay day loan!

  • http://www.samedaypaydayloanss.co.uk/ samedaypay

    Nice i like it… >> Small Payday Loans <<

  • kristiekburchfield

    before I looked at the check of $8543 , I accept
    …that…my neighbour woz like they say truley earning money parttime on their
    apple labtop. . there sisters neighbour has done this 4 only 19 months and by
    now cleared the debts on their house and bourt a gorgeous Ford . visit this
    site C­a­s­h­d­u­t­i­e­s­.­C­O­M­

  • Austin Gift

    Hello

    I am Mr. Austine, a private money lender. I give out loans with an interest rate of 3% per annual and within the amount of $1000.00 to $500,000,000.00 as the loan offer. 100% Project Funding with secured and unsecured loans are available. We are guaranteed in giving out financial services to our numerous clients all over the world. With our flexible lending packages, loans can be processed and funds transferred to the borrower within the shortest time possible. We operate under clear and understandable terms and we offer loans of all kinds to interested clients, firms, companies, and all kinds of business organizations, private individuals and real estate investors. Just complete the form below and get back to us as we expect your swift and immediate response. EMAIL : austinegiftcompany@gmail.com

    Attention!!!

    Do you have a bad credit?
    Do you need money to pay bills?
    Do you need to start up a new business?
    Do you have unfinished project at hand due to bad financing?
    Do you need money to invest in some area of specialization which will profit you? and you don’t know what to do.

    We offer the following loans below,
    personal loans[secure and unsecured]
    business loans[secure and unsecured]
    combination loans
    students loans
    consolidation loans and so many others.

    1. Full Names:……………………….
    2. Contact Address:…………………..
    3. Loan Amount Needed:………………..
    4. Duration of the Loan……………….
    5. Direct Telephone Number:……………..

    Email austinegiftcompany@gmail.com

    Best Regards,

    Mr Austine