Payday Pundit » Denver Post

Fair headlines or not fair headlines?

Payday Pundit — Sat, 31 Jan 2009 13:07:17 +0000

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.

Colorado payday lending bill pronounced “dead”

Payday Pundit — Tue, 22 Apr 2008 18:29:20 +0000

That’s what this article in the Denver Post says of the Colorado payday lending legislation. The coverage fails to mention that an effective ban on payday lending would have done nothing to help consumers in Colorado. Consumers are best off when they have all the necessary information and are able to make financial decisions based on what’s best for them. Banning a credit option is not “protecting consumers.”

Must read op-ed in Denver Post

Payday Pundit — Fri, 14 Mar 2008 15:36:51 +0000

Terry Kibbe of the Consumers Rights League has a guest piece today in the Denver Post that picks up on recent research by Don Morgan of the NY Federal Reserve.

Money quote: ”Morgan also questioned the validity of the research from the Center for Responsible Lending saying the Center ‘overstated the number of problem borrowers.’ He noted that banning payday loans actually leads to more people bouncing checks, filing for bankruptcy and fighting with collectors. After payday loans in Georgia were banned in 2004, Morgan found, “bounced checks in the Fed processing center in Atlanta jumped by 1.2 million, a 13% increase.”

Interesting thoughts from U of CO professor

Payday Pundit — Thu, 13 Mar 2008 16:26:17 +0000

Jeffrey S. Zax, an economics professor at the University of Colorado at Boulder takes a different approach to the debate over payday lending. In his letter to editor to the Denver Post, he writes, ”Payday lenders’ interest rates seem outrageous. If payday lenders are actually making unconscionable profits, why aren’t other lenders entering the market?” Mr. Zax goes on to write, ”The first legislative priority should be to examine the regulatory regime to find out why competition isn’t working. If it can be encouraged, interest rates will go down and the supply of loans will increase. If, instead, rates are capped, they’ll go down but so will loan supply. Borrowers who can still get loans will benefit, but those who can’t will wish that they were allowed to pay higher rates.”

Smart words from someone who knows economics.