Power of pawn
January 11, 2010 | Iowa, alternatives | Comments (1)More borrowing less lending at a pawn shop in Iowa.
Could be trouble in Iowa this year
January 5, 2010 | Iowa, industry | Comments (0)If you’re Catholic and live in Iowa, talk these people:
A legislative effort to tighten regulation of payday loans has received a significant boost with the endorsement of the Iowa Catholic Conference, which called Tuesday for new restrictions on loans where interest rates can soar to 400 percent.
I doubt the Iowa Catholic Conference has the resources to provide loans to payday lending customers when they have a bill to pay.
She said/she said/she said
December 26, 2009 | Iowa, industry | Comments (0)I don’t think I’ve ever seen a newspaper print a letter to the editor that was in response to a letter to the editor that was in response to a letter to the editor.
An Iowan against out-of-state invesment
December 18, 2009 | Iowa, industry | Comments (1)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.
Silliness in Iowa
December 6, 2009 | Iowa, industry | Comments (0)A protest for rate caps. We’re told these people have no credibility.
We agree
November 5, 2009 | Iowa, federal legislation, industry | Comments (0)The Iowa Attorney General thinks the CFPA should be focused on preventing “fraudulent practices” and that state agencies should be involved in enforcement.
Who’s stopping them?
November 4, 2009 | Iowa, industry | Comments (0)From a letter in the Dubuque Herald Telegraph:
The average payday loan rate in Iowa is 430 percent annual percentage rate. The average payday loan term is two weeks.
One solution to the practices of these enterprises that gouge the poor, some of whom are unknowing victims, is for banks and credit unions to step forward and make available small loans ($250 to $1,500) at a reasonable rate of interest (12 percent?) payable in one to two years. Loan participants would be required to complete a mini budget-balancing course provided by NICC, the Community Foundation or one of the churches or other agency.
If the banks and credit unions want to make $250-$1500 loans, there is nothing stopping them. But we doubt consumers would be interested in being “required” to complete a course before they get a $250 loan.
More city council nonsense
July 22, 2009 | Iowa, industry, local issues, regulation | Comments (0)This city council is looking at interest rates, an issue they really have no authority to regulate.
Stupidity in action
July 20, 2009 | Iowa, industry | Comments (2)Iowa’s Citizens for Community Improvement held a protest at a payday lending store:
Iowa CCI has its own small-dollar loan program that offers low-income community residents a viable alternative to payday lending. The loans range from $250-$1500, have a fixed interest rate of 12 percent, and can be paid back over one to three years.
“Ultimately, we’d like to see payday loan providers adopt our model of small-dollar lending,” said Johnetta Levell, an Iowa CCI member and local neighborhood resident.
But the CCI model is not a payday loan. CCI wants to force people who want a two-week, $350 into taking a long-term loan. This is beyond stupid.
Another one we missed
June 25, 2009 | Iowa, alternatives, industry | Comments (3)An alert reader saw this column about a payday loan “alternative” in the Cedar Rapids (Iowa) Gazette:
The bank loaned a total of $50,000 at 12 percent interest for terms of one to three years — compared with payday lenders’ two-week loans at an annual interest rate of 300 percent or greater.
As usual, no information about the term length, fees, or other restrictions. In any case, let the consumers decide.
