Oh, please
April 12, 2010 | Consumer Federation of America, federal legislation, industry | Comments (1)From the story:
Now the Consumer Federation of America (CFA) says support for a new consumer financial protection agency is growing. The group says a recent survey indicates support for a new agency to look out for consumers is now at 62 percent (of those surveyed) as compared to 57 percent.
Now look at this loaded question:
Folks were asked a number of questions including “ Do you believe that consumers need more effective protections against unfair and deceptive practices by banks and other financial institutions?”
I wonder how it would have turned out if they asked, “Do you believe that a new government bureacracy is needed to regulate your financial choices?”
How a “consumer” group sees it
March 23, 2010 | Consumer Federation of America, federal legislation, industry | Comments (0)Consumer Federation of America issued this news release on the Dodd bill markup. Phrases never seen coming out of the mouths or in the news releases of people like this are “free markets” ” or “economic growth.”
GMA hack job
May 26, 2009 | Consumer Federation of America, industry | Comments (3)Your blood will boil after viewing this story on Good Morning America. Notice the focus on company “revenue” not actual profits. No mention of millions of satisfied customers. It doesn’t get more biased or ugly. Please go to the comments section and let them know how you feel.
Clueless at the New York Times
April 13, 2009 | Consumer Federation of America, federal legislation, industry, industry critics, media coverage | Comments (0)They oppose the Gutierrez bill, support a 36% rate cap in today’s editorial:
A better option is already in place in some states and for the military — keeping short-term or small loans under a 36 percent annual interest rate, which is high enough. Representative Maxine Waters, a Democrat from California, assessed the Guttierez bill correctly when she said: “We’ve got to resist any attempt to make it look as if we are cracking down, when in fact we are opening the door to more abuse.”
As we said below, the military is now on charity. Is that what the New York Times is proposing for the rest of the country? Oh, and they spelled Gutierrez wrong!
AZ Star at it, too
April 13, 2009 | Arizona, Consumer Federation of America, industry, regulation, states | Comments (0)The editorial board at the AZStar in Arizona has weighed in on federal legislation:
At the end of 2006, Congress effectively banned payday loans for military personnel, capping loans to such borrowers at 36 percent. If Congress considers payday loans bad for the national’s military force, they should also be considered unwise for the rest of Americans.
As we’ve point out in this space, no lenders stepped in to make loans at 36%. Military personnel now get charity from the military relief societies.
“Intelligence and thoughtfulness”
April 6, 2009 | Consumer Federation of America, federal legislation, industry | Comments (0)That’s how Seeking Alpha, a financial blog, describes how the members of the House subcommittee approached the payday lending hearing last week:
Most importantly, we got to see the testimony and deserved grilling of Jean “Queen of Hearts” Fox, from the Consumer Federation of America. Despite having evidence and testimony that directly contradicted her rigid ideological position right there in the room, she rambled on insistently about irrelevant APR calculations, how the loans are bad for people, and why rates should be capped at a level so low as to effectively ban lenders. All this, while there was a real-life, flesh and blood Alice three seats away saying how glad she was that the product was there for her, and that she hopes it’ll be there if she needs it in the future! But The Queen of Hearts kept insisting “Off with their heads!” Fox thus made her case perfectly – that opponents like her are living in Wonderland, out of touch with reality.
To the committee’s credit, they drilled her on the most important issue: if you ban payday loans, where will people go for short-term credit? The Queen got slapped back on every ridiculous alternative, right down to obscure credit union programs that barely cover 1% of the country. To anyone who still doubts that payday loans have a place, watch her testimony. She represents you, and she made the industry’s case for them.
I think Seeking Alpha shows a lot of intelligence and thoughtfulness in this blog post.
All or nothing
March 30, 2009 | ACORN, Consumer Federation of America, federal legislation, industry critics | Comments (0)That’s the attitude of consumers groups when it comes to federal legislation on payday lending. Read this story about the crazy letter they sent to Congressman Gutierrez.
Fair headlines or not fair headlines?
January 31, 2009 | Colorado, Consumer Federation of America, Denver Post, alternatives, industry, states | Comments (0)From today’s Denver Post:
“Car title loans: Good option for fast cash?”
“Refund Anticipation Loans: Ripoff or Royal Screwjob?”
In 25 years in media and public relations, the Payday Pundit has never seen the word “screwjob” used in a headline.
…”homemakers, firefighters and teachers…”
December 24, 2008 | California, Center for Responsible Lending, Consumer Federation of America, LA Times, customers, employees, industry, industry critics, media coverage, positive media coverage | Comments (0)Those are the payday lending customers discussed in this this four-page story in the Los Angeles Times headlined: “More in middle class using payday lenders”:
With tidy lobbies that resemble bank branches, many outlets are in shopping centers anchored by Wal-Marts, grocery stores or other big retailers. Lenders say their typical customers include homemakers, firefighters and teachers, whose steady jobs qualify them for loans.
Yes, the typical customer is the typical American.
Here’s the side bar to the article: “How payday loans work.”
Short of cash to fix her ailing BMW this year, Lunetta Blanks could have paid the bill with plastic. Instead, the federal investigator opted for a payday loan, shelling out $300 to pay off a $255 loan from the Advance America branch in her Silver Lake neighborhood.
Hell freezes over!
December 6, 2008 | Consumer Federation of America, industry critics | Comments (0)Because we find ourselves in agreement with the Consumer Federation of America on the issue of some on-line payday lending. From today’s article:
Jean Ann Fox, director of financial services for the Consumer Federation of America, said such loans have the disadvantages of a payday loan as well as additional dangers.
“Online payday lending is extremely risky for consumers,” Fox said this week. “The borrower must provide all of their personal information online, including their Social Security number and bank-routing number to give the lender access to their account.”
So it would be smart to stop attacking storefront lending, correct, Ms. Fox?
