Payday Pundit

Veritec Solutions, the government contractor that monitors payday lending transactions in several states, had this to say about the Center for Responsible Lending’s latest lies:

“The Center for Responsible Lending (’CRL’) in their September 16, 2008 CRL Report ‘High Cost Payday Lending Traps Arizona Borrowers’ misinterprets statistics published by Veritec as part of our contractual agreements with various state agencies,” said Thomas Reinheimer, CEO of Veritec Solutions LLC of Jacksonville, Florida.

The CRL Report inaccurately reflects referenced information in state regulatory program reports published by Veritec that are based on millions of actual loan transactions. “For example, the CRL Report implies that Florida borrowers are ‘trapped’ into renewing an initial loan 8 times each year. This is absolutely wrong and reflects a misunderstanding of Florida law,” according to Mr. Reinheimer. “Florida law prohibits multiple outstanding loans or loan renewals and requires a 24-hour waiting period between loans. The statewide real-time database integrated with all licensed lenders effectively enforces these provisions despite CRL claims that consumers re-open their original loan every 2 weeks. CRL continues to make these claims that are contradictory with information reported from these states

The whole release is worth reading.  The Center for Responsible Lending has misused data for years and the media has let them get away with it.   Well, the tide is turning.