Wallet Pop’s newest post details the state of the industry today.
He notes that in Oregon, a 36% annual cap was put on the payday lending industry, and 80% of the stores closed up and went out of business.
Payday Pundit especially likes the first comment posted in response, “I enjoy seeing states tighten credit in the middle of a credit crisis - it reinforces my view that politicians have no clue what they’re doing.”
Update: thanks to a reader for pointing out that “In Oregon it’s a 36% annual rate cap plus a $10-per-$100-borrowed loan origination fee. If it was just a 36% annual cap, like they’re proposing in Ohio, 100% of the payday loan stores would have closed.”
2 responses so far ↓
1 Jon Schultz // Apr 30, 2008 at 10:30 am
In Oregon it’s a 36% annual cap plus a $10-per-$100-borrowed loan origination fee. If it was just a 36% annual cap, like they’re proposing in Ohio, 100% of the payday loan stores would have closed.
The press in Ohio now has a good story. Either Governor Strickland is a complete moron - not being able to see what any child should be able to see, that a 36% interest rate cap will end short-term lending in Ohio - or else he is a bald-faced liar, pretending that there will still be payday lenders who can operate profitably under the 36% rate cap when he damn well knows there will not be.
2 Vickie // Aug 24, 2008 at 5:51 pm
Whoever would work for a payday lender cannot have a good life. You cannot hurt people in this way and think good things will happen to you. Everyone decent wants to be part of something good. This is not a good industry. Most people involved in the payday borrowing end of things hates it and wants out. Who would sign a petition knowing what the consequences are for his fellow man. Think Ohio.
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