This line from a letter-to-the-editor boggles the mind:

…. nearly $40 million in fees alone leave Iowa for corporate payday lending headquarters in other states.

By that reasoning, when an Iowan buys a car, they are sending money to an out-of-state car company.  Even, heaven forbid, a foreign car company.

A new payday loan “alternative” announced yesterday with great fanfare:

Now San Francisco residents have another choice, unveiled on Thursday by the mayor and Treasurer Jose Cisneros. It’s called Payday Plus SF and it’s an option to what critics call the predatory practices of payday lenders.

“It’s one thing to criticize these APRs that are as much as 400-500 percent, but if you don’t have an alternative, it’s unfair to criticize. So we are trying to offer an alternative,” said Newsom.

The city is teaming up with six credit unions and their branches to offer loans of up to $500 with a maximum interest rate of 18 percent and a year to repay.

“It’s an opportunity to extend that kind of credit to people who would otherwise not have access to quality rates,” said Margaret Libby from Mission San Francisco Federal Credit.

From what we know so far, the loan also has an application fee and longer terms.

GAO to investigate the radical group’s use of federal funds, according to FoxNews.com.

The Hill blog says Senators Dodd and Shelby are making progress and to look for a bill in January:

“What these meetings are devoid of is ideology, which is very very encouraging to me,” Dodd told reporters this afternoon. “My hope is when we get back in January, that we’ll — depending on how the progress is moving — schedule a markup on the committee. “I hope by that time we’ve come to some real consensus on as many issues as possible, all if possible, and move forward with the bill.”

Take you’re time, we’re in no hurry.

From the story:

Central Ohioans are turning in their unwanted jewelry into cash, and not just through jewelry stores and mail-in offers. They’re heading to pawnshops, too.

“The price has absolutely affected our business, and we are seeing a big increase in the number of people bringing in their gold,” said Lou Tansky, president of the Ohio Pawnbrokers Association and owner of Uncle Ben’s pawnshop in Cleveland.

Great.  Let Ohioans choose among pawn shops, payday loans or other financial services if they need cash.

An editorial writer at this small rag is on his high horse again.   Writers like this put their worldview ahead of the facts, so it’s very difficult to educate them about the demand for short-term loans and the limited choices facing consumers.

Jamie Fulmer of Advance America takes issue with a recent column in The Missourian.  From Fulmer’s letter:

We post our rates and fees prominently on the walls of all our stores and our agreement documents fully outline the terms of the transaction. Customers tell us that they choose payday loans, in part, because they are simple, reliable and transparent.

Of our customers, Mr. Jarvis alleged that “nearly all felt misled or abused.” Wrong.

A recent study from the George Washington University School of Business concluded that payday-advance borrowers make informed choices. About half of those surveyed had considered other credit alternatives — such as bank or credit card services or personal loans — before taking out a payday advance. Many (over 80 percent) chose a payday advance to avoid expensive checking account overdraft fees and nearly all (90 percent) said they were satisfied with their transactions.

Many journalists or columnists who write about payday lending have never even visited a store.

Dems are already running ads against House Republicans who opposed the CFPA.

The Chamber of Commerce, just like the CFSA, will fight to the finish.

Reason.com is concerned about the proposed financial reforms sweep in nonprofits that give financial advice.  From the story:

The first public version of the Wall Street Financial Reform and Consumer Protection Act was sloppily written and even more sweeping. The language suggested that even incidental financial advice, discussion, or suggestions from nonprofits would be regulated by the new all-powerful agency. As the bill struggled through the House process, exceptions for small banks, accountants, real estate brokers, car dealers, and pawn shops were inserted.

Sandra Swirski, the executive director of the Alliance for Charitable Reform, fought for another exception as well: charities. “We became concerned because financial activity is defined broadly,” she says. “It could capture a small solicitation at the bottom of a college brochure to alumni, foundation advice to grantees, and other day-to-day garden variety financial information.” Her group helped move an amendment to protect “any activities related to the solicitation or making of voluntary contributions to or through a tax-exempt organization.” This means it’s still safe to beg for money and then advise people about the best way to give.

But charities that give financial advice and counsel as part of their mission—like the Girl Scouts—remain exposed to the new regulatory agency under the “educational courses” language.