Bill to block lenders from providing open ended lines of credit heading to Governor.  The Virginia legislature must not know about the credit crunch.

PDLindustryblog is impressed with the efforts the Army is making toward getting soldiers short-term credit.

This smug, ignorant columnist, Darrin Garnick, thinks payday lenders left New Hampshire in a fit of spite.  No where in this column does the writer show any understanding of the costs of doing business under a 36% rate cap law, specifically, a $1.38 charge for every $100 loaned.  Note to Mr. Garnick: businesses seek profits.  They are not in the business of making loans at a loss.

Payday lending customers are banked!   This Los Angeles Times story would take all to rebut, but so decided to just point out the obvious.

This time from the Governor: 

“If these folks are … attempting to or continuing to circumvent the intent of the law that was passed, then … I would suggest that we revisit that,” the governor told Statehouse reporters Feb. 19.

No Governor.  Companies are operating under two currently established Ohio laws, the Small Loan Act and the Ohio Mortgage Loan Act.  The new service was approved by the Ohio regulation authorities.

A payday lending store manager speaks out in Kentucky:

Short-term loans carry high risk and low rewards for a lender. That’s why very few banks offer a similar service. In today’s economy, many families turn to us for short-term credit, and we are glad to help them in their time of need.

Payday loans are not for everyone; they’re not intended to be and they aren’t marketed as long-term products.

They are for people truly in need of short-term credit, and critics shouldn’t try to put payday lenders out of business simply because they don’t understand what we do or haven’t taken the time to research the industry’s best practices.

As we’ve point out in this space many times.  The payday lending industry makes modest profits which proves that the service is priced a low as it can get.

From the story:

Read about it here.

Consumer groups and academic researchers agree: Payday advance fees are lower than many of consumers’ alternatives, even when expressed as an annual percentage rate (APR). Read more.

Payday lending critic is retiring from Virginia House of Delegates.