Comment of the Day
September 2, 2010 | Uncategorized | Comments (0)Regarding Colorado rules:
Great…thats {sic} enough to put some small lenders out of business!
Tea leaf reading cont.
September 2, 2010 | CFPB Nomination, Elizabeth Warren, Financial Reform Bill - CFPB, federal legislation | Comments (0)Elizabeth Warren was supposed to teach at Harvard this fall semester. The school announced a replacement teacher.
Montana battle heats up
September 1, 2010 | Montana | Comments (0)From the story:
Opponents worry an initiative to cap interest rates on payday loans could drive them out of business.
Voters will decide Initiative 164 in November. Wednesday, supporters rallied in Missoula. Right now, lenders can charge more than 400% interest annually. The measure would cap the rate at 36%.
One payday lender thinks it’s a bad idea. She worries about what her clients will do if lenders start going out of business.
“They can’t go to their banks and borrow just $300 to buy groceries for their kids or your know, I’m worried about what the people are going to do,” Quik Check’s Jill Wright said. “How many are going to not pay their rent and be out on the street?”
The problem with ballot initiatives is that citizens with no experience with payday loans are influenced by the media coverage and we know how unfair that is.
Accepting reality
September 1, 2010 | CFPB Nomination, Elizabeth Warren, Financial Reform Bill - CFPB, federal legislation | Comments (0)Wall Street is coming around on Elizabeth Warren.
Colorado rules
September 1, 2010 | Colorado | Comments (1)From the story:
Payday lenders will be required to give pro-rated refunds to customers who pay off their loans early, The Pueblo Chieftain reports.
Under enforcement rules adopted Tuesday by the Colorado Attorney General’s office, payday lenders cannot keep origination fees for their loans.
No announcement this week
August 31, 2010 | CFPB Nomination, Financial Reform Bill - CFPB, federal legislation | Comments (0)From The Hill:
No announcements are expected this week on a replacement for a departing White House economic adviser or who will lead the consumer protection agency created under the new financial reform law.
Girding for Warren
August 31, 2010 | CFPB Nomination, Elizabeth Warren, Financial Reform Bill - CFPB, federal legislation | Comments (0)From the New York Post:
Wall Street is preparing for a hurricane starting with the letter E, but it’s not Earl, it’s Elizabeth, as in Warren.
Bankers appear to be resigning themselves to a fate worse than tougher financial regulation: The hard-charging Harvard professor, who oversees TARP funding, seems a near-cinch to be named the nation’s consumer watchdog.
“At this point, it seems pretty clear that she’s going to get the nomination,” said one high-ranking bank official, noting that President Obama, who has been sliding in the polls, could use a Warren nomination as a rallying point.
Comment of the Day
August 31, 2010 | Uncategorized | Comments (0)This past weekend I paid $3 to a store ATM so I can get $40 out of my own money! But I am not complaining.
The point is lack of options is what led me to go to a store ATM to get cash out when I needed it. So in fact I appreciate the fact that someone put an ATM there in middle of nowhere to help me out. $3 is a bit too high but it did help me out.It’s the same deal with payday loans and other type of short term loans. People take them, because they under employed and they have problem with cash flow but they lack option. And banks aren’t lending these days, they are in fact taking money away from people in all sort of way. So people go with payday lender.
I would really hope State and Federal politicians would promote responsible payday lending, instead of continue threatening of banning it. And I wish they would put more focus on creating jobs so people would be less reliant on payday loans or any type of loans.
Reconsidering in Jackson
August 31, 2010 | Mississippi | Comments (0)From the story:
Restricting the high amount of interest a quick-cash company charges its borrowers would put the company out of business, Scott Putnam told the Jackson County Board of Supervisors on Monday.
Putnam told the board people in Mississippi need the option of payday loans. He said they are a cheaper option than the alternative, which is writing a bad check and being charged an over-draft fee by a bank or credit union.
Speaking on behalf of an association for quick-cash lenders in the state, he also said 4,000 people in Mississippi make a living writing short-term, high-interest loans.
Putnam’s plea, along with calls they got from legislators and state financial officials, convinced some members of the Board of Supervisors to reconsider a stand it took last week against predatory lending that exploits low-income and desperate people. The board had voted to ask the Legislature to let laws expire that support high-interest loans and then cap annual interest rates at 36 percent.
Supervisors rescinded that vote Monday, saying they needed to look into the issue more thoroughly.
Should payday loans be outlawed?
August 30, 2010 | positive media coverage | Comments (1)A California state senator answers the question emphatically in a Washington Informer guest piece:
Traditional banks are allowed to hold government deposits where they pay minimal interest rates and make a sizeable profit. And as we have seen if the traditional bank makes a bad decision the government bails them out. So if those concerned offer no solutions, don’t close the door on the last hope for those locked out. While the poor and credit-challenged appreciate your sympathy, if you can’t help, don’t hurt.
