Controversy in Chicago
June 29, 2009 | Illinois, industry | Comments (0)A local payday lending is making loans to the unemployed. From Crains Business:
PLS Financial Services Inc., with 47 local branches and $219 million in revenue last year, is marketing its high-rate, short-term loans to the unemployed, aiming to capitalize on the worst recession since the early 1980s. With metropolitan Chicago’s unemployment rate up to a seasonally adjusted 10.5% in May from 6.3% a year before, that’s a lot of potential customers.
“If you believe there’s nothing wrong with (this type of) loan, why should (the unemployed) be any different from someone who has any other form of income?” says Robert Wolfberg, who shares the title of PLS president with his brother Dan.
Yet the new push doesn’t sit well with consumer advocates, who have fought PLS and other payday lenders in Springfield to try to cap the rates they can charge and are quick to protest on moral grounds.
I believe they couldn’d discriminate based on source of income eve if they wanted to.
What’s your point?
June 24, 2009 | Illinois, Uncategorized, regulation | Comments (0)From a column in Chicago Business.com about Illinois reform legislation that died:
Now, I’m not without sympathy for payday lenders. I understand why some, as a matter of libertarian principle, oppose any usury limits. The lenders are entitled to make a buck, and bills like Ms. Hamos’ surely would cut off some poor folks from access to credit.
But not everyone deserves access to credit all the time. Subprime lending to those with subprime finances arguably is the main reason why the nation is caught in the worst downturn since the Depression. If the industry has to clobber many low-income families with killer rates to make up for other borrowers who default, maybe the industry ought to tighten its lending standards.
Has this guy done his research? The industry doesn’t “clobber low-income families.” Payday lending customers are middle class. And the industry has low default rates, much lower than most banks and credit unions.
Teaching math
June 23, 2009 | Illinois, industry, regulation | Comments (0)Larry Meyers schools “Progress Ilinois”on the numbers.
And don’t forget to check out Larry’s book, “Teacher of the Year.”
Frivilous litigation
June 19, 2009 | Illinois | Comments (0)And PDLindustryblog is unhappy.
A death in Illinois
May 29, 2009 | Illinois, industry | Comments (0)According to this story, payday lending refom legislation has died in Illinois:
On Tuesday evening, the industry won out again as the House Executive Committee rejected Rep. Julie Hamos’ (D-Evanston) SB 1435, which would have established reasonable interest rate caps and fair finance charges on these largely-unregulated loans. Eight members of the committee voted “Present.” “It’s a big disappointment for those who have been working hard on the issue for years,” Hamos told us from the House floor yesterday.
Truthfully, we haven’t been watching this and don’t know much about it.
Illinois is the “Wild West”
May 6, 2009 | Illinois | Comments (0)At least the “Wild West” of the payday lending industry according to these people.
Illinois noise
May 4, 2009 | Illinois, industry, regulation | Comments (0)From the story:
Consumer groups in Illinois say a recent law curbing payday lenders needs more changes.
Reformers say lenders are exploiting loopholes in a 2005 law designed to stop abuses by payday lenders.
State Representative Julie Hamos says short-term lenders get around the regulation by stretching out loans to more than four months which skirt the current law.
We’ll stay on top of this. CFSA is well represented in Illinois.
What’s going on in Illinois?
May 1, 2009 | Illinois | Comments (0)PDLindustryblog is on top of it.
Stirring in Illinois
April 28, 2009 | Illinois, industry | Comments (0)Consumer advocates held a rally. Yawn.
This is nonsense
April 8, 2009 | Illinois, federal legislation, industry, regulation | Comments (0)Sen. Dick Durbin held a news conference in Chicago yesterday to discuss his 36% cap bill. This jumped out at me from the story:
“People need access to good and clear credit,” DeLaforgue said. “But we don’t need access to unfair, predatory loans that strip people of their dignity, strip people of their assets and send them into bankruptcy.”
Lynda DeLaforgue is co-director of Citizen Action. I think she knows better than to say that payday loans “strip people of their assets” (they are uncollateralized loans) or force them into bankruptcy. That’s just spreading lies.
