There will be blood
July 1, 2009 | federal legislation, industry | Comments (0)From Business Times:
US lenders gear up to kill consumer protection planBut they face uphill battle as lawmakers voice strong support
(WASHINGTON) Banks and mortgage lenders are placing top priority on killing President Barack Obama’s proposal to create a new consumer protection agency that would regulate home loans, credit card fees, payday loans and other forms of consumer finance.
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It’s going to be a huge fight,’ said Edward L Yingling, president of the American Bankers Association. ‘This is written so incredibly broadly that it affects anyone who has anything to do with consumers. This agency would have broad powers that go beyond every consumer law that has ever been enacted.’
Complete disclosure
July 1, 2009 | Uncategorized | Comments (0)PDLindustryblog discusses Obama’s regulatory scheme.
Hysterics
July 1, 2009 | federal legislation, industry | Comments (0)We thought the British were practitioners of understatement. That’s why this headline in a British newspaper caught our attention: “Banks Own the U.S. Government.”
The Payday Pundit happen to run into an old Senate staff colleague yesterday who now lobbies on financial issues. He was lamenting the fact that banks have lost a lot of clout on Capitol Hill.
Comment of the Day
July 1, 2009 | Uncategorized | Comments (0)Banks have a provision for loan losses 1-2%. The don’t have the appetite, for risk, to offer payday loans as a main product line. Besides, they’re too busy collecting the easy money – overdraft fees.
These groups do their research, dance around the topic and when it comes down to a solution; it’s never realistic.
If the country put a cap on the price of cars, it would suck all the competition out of the market and fewer cars would get sold. The same would happen to lending.
California IOUs
July 1, 2009 | California, customers, industry | Comments (1)We’re hearing from some payday lenders that they will honor the state of California’s IOUs as proof of income.
Squeezing more people
July 1, 2009 | alternatives, industry | Comments (1)Chase is raising its minimum credit card payment. From the story:
Chase is increasing the minimum payment on some credit card accounts from 2 percent of the balance to 5 percent. This angers cardholder Sonja Young of Portland who says the move will hurt people on tight budgets. But it’s also potentially a good thing. One industry analyst explains why Chase is doing it.
Chase spokeswoman Stephanie Jacobson said the increase takes effect August 2009 on “select accounts that have carried balances.” It boosted the payment, in part, to “protect our customers and our company.”
Like anything else, it will have good and bad effects. On one hand, consumers will be more squeezed during this crunch, on the other hand, they will be forced to pay their credit card down quicker.
Reminder
July 1, 2009 | Virginia, regulation | Comments (0)New law takes effect in Virginia today. We’ll link in article as soon as one appears today.
Update: Here’s an old story the explains the new law.
That’s a good deal
July 1, 2009 | Idaho, industry, regulation | Comments (0)New law in Idaho takes effect today. If an Iadahoan takes a loan from an unlicensed payday lender, he doesn’t have to pay it back.
“Foul”
July 1, 2009 | industry | Comments (0)That’s what banks are crying over the new Consumer Financial Services ProtectionAgency.
