Comment of the Day
May 2, 2010 | Kentucky, federal legislation, industry | Comments (0)Regarding Kentucky’s new data base:
Yea, it launched today… on a Friday… the last day of the month… and on the biggest/busiest weekend in the state of Kentucky… Derby weekend. (Well, at least it’s a big deal in the biggest city/market in KY – Louisville) Don’t worry about changing the way business is done and causing stress for consumers and the businesses that service them on the worst possible day of the entire year KY DFI. I’m sure there was some logical reason the database HAD to be launched TODAY. I’m just not smart enough or “in the know” to understand it I guess.
Kentucky data base
April 30, 2010 | Kentucky, industry, regulation | Comments (1)Up and running. From the article:
State law limits customers to two payday loans at a time, totaling $500. With the database, customers who exceed the limit won’t be able to receive a new payday loan until they pay off prior loans.
Kentucky data base
March 2, 2010 | Kentucky, industry, regulation | Comments (2)Begins on May 1. From the story:
A “real-time” database of payday lending transactions will be up and running as of May 1, according to Charles Vice, Commissioner of the Department of Financial Institutions.
And, according to the CEO of the company, which will operate that database, Kentucky is likely to see a reduction in the number of payday lenders after that. Thomas Reinheimer of Veritec Solutions said his company operates such databases in nine other states and in each, about “18 to 20 percent” of licensed payday lenders closed down once the database was in operation.
The database is required under a law passed last year which was sponsored by Rep. Johnny Bell, D-Glasgow. It makes illegal internet payday loans and requires all payday loan transactions to be entered into the database, including customer name, address, phone number, amount of the loan and the number of loans which the customer has outstanding.
PDL not on Kentucky agenda
February 26, 2010 | Kentucky, industry | Comments (0)And a Kentucky editorial writer whines about it. From the story:
Payday lenders can roll out their own arguments against the criticisms. {Committee Chairman} Greer’s refusal deprives lawmakers and the public of the benefits of that debate.
Nonsense. They had a debate last year and want to see how the new law works before they revisit the issue.
Stick a fork in Kentucky bill?
February 24, 2010 | Kentucky, industry | Comments (0)According to the Louisville Courier Post you can:
Rep. Jeff Greer, D-Brandenburg, chairman of the House Banking and Insurance Committee, said Wednesday that he doesn’t plan to call House Bill 381 for a hearing this session because he wants to give a new electronic system meant to monitor the payday industry time to work.Greer, whose committee heard testimony about the system from the state Department of Financial Institutions on Wednesday, said in an interview that the state needs time to gather data it currently lacks.
Phony study released in Kentucky
February 24, 2010 | Kentucky, industry | Comments (0)A local group puts together meaningless numbers and then makes stupid conclusions. They call it a “study.” From the story:
“More than four million loans were made in 2008 to Kentuckians who paid more than 400 percent in interest on those loans. So, we see a huge problem with payday lending in the state of Kentucky.”
How many Kentuckians were able to make a car payment or pay a utility because they had access to short-term credit? Oh, they didn’t study that.
Don’t know what’s up with Kentucky
February 10, 2010 | Kentucky, industry | Comments (0)I used to think it was a freedom loving state.
Kentucky bill snagged?
February 9, 2010 | Kentucky, industry | Comments (0)From the story:
A measure that would cap interest rates on all short-term loans at 36 percent might never get a hearing in the Democratic-controlled House, despite the backing of Democratic Gov. Steve Beshear.
Banking and Insurance Committee Chairman Jeff Greer said he has not decided whether he will hear House Bill 381, a measure that has 19 co-sponsors and the support of more than 50 social service groups.
Greer, D-Brandenburg, said Monday that he would first like to hear more about a database that was approved in 2009 to track all payday loans in Kentucky. The database would be used to determine whether people were receiving more loans than the law allows.
It’s nice to wake up to some good news.
Don’t lecture Kentuckians
February 8, 2010 | Kentucky, industry | Comments (0)CFSA’s Board Chair D. Lynn DeVault has an oped in the Louisville Courier Journal:
The national Center for Responsible Lending (CRL) has been labeled a “Predatory Charity” by the Consumer Rights League because it is a front for financial institutions that compete with payday lenders but themselves prosecute low-income customers who can’t repay high-interest loans. CRL was founded with funding from Marion and Herb Sandler, pioneers of the use of adjustable rate mortgages which contributed to our nation’s financial collapse. The Sandlers made a $3 billion profit by selling their company to Wachovia shortly before the credit market crashed under the weight of their toxic home mortgages.
Kentuckians don’t need a lecture on financial reform from a coalition with a record like this.
Rate cap bill filed in Kentucky
February 5, 2010 | Kentucky, industry | Comments (0)Not sure it’s going anywhere. We’ll see.
