Well said
February 8, 2010 | Michigan, industry, regulation | Comments (0)CFSA’s witty and erudite spokesperson, Steven Schlein, makes the case for payday loans in Michigan’s Herald Palladium:
Schlein, of the industry lobbying organization, argues that for loans under $700, payday loan fees are more economical than risking overdraft fees, which can be as high as 10,000 percent. Schlein said customers take out payday loans to avoid overdrafts. “Our customers are extremely satisfied with the product,” he said.
Bring on the competition
October 3, 2009 | Michigan, alternatives, industry | Comments (0)CFSA’s Steven Schlein had this to say about Fifth Third Bank’s payday loan alternative:
A spokesman for the payday lending industry association says it welcomes the competition.
“We always believe that we can compete with anybody,” said Steven Schlein, a spokesperson for the Community Financial Services Association of America, which represents 22,000 payday stores nationwide. “The bank products have rarely ever proven to be less expensive or more convenient for our customers.”
Scammers should be shot
March 25, 2009 | Michigan, customers, industry | Comments (0)They give everyone a bad name. This is a story about an online lending company that appears to be set up to commit fraud. If anyone from this company–500FastCash.com–has a response, we’d be happy to post it here.
Good for them
December 16, 2008 | Michigan, alternatives, industry | Comments (0)A credit union opens in a rough neighborhood of Detroit and the risk pays off:
Eight months after opening its first branch office in the home of the groundbreaking Model T plant, the Communicating Arts Credit Union is proving that businesses can thrive in one of the nation’s most economically depressed cities.
Since entering Highland Park in April and broadening its membership criteria, the 73-year-old credit union, which caters to low- and moderate-income individuals, has gained about 800 members at its new location.
That’s up from the 691 new members it attracted during all of last year.
The branch — at the Shops at Woodward Place, across from the dilapidated Model T plant — has garnered $400,000 in new deposits and made about $619,000 in loans, exceeding the credit union’s expectations.
Stupidest things we’ve ever heard
November 11, 2008 | Michigan, industry, media coverage, states | Comments (2)Western Michigan University is hosting an “ethics bowl.” Here’s one of the agenda items:
• What would be the most effective and morally justifiable strategy for church and community groups to pursue to reduce the harms brought by payday-loan businesses?
How about letting citizens make their own financial choices?
Wyoming, Michigan?
October 13, 2008 | Michigan, local issues, states | Comments (1)I don’t think we’re talking about two states here. There’s a town in Michigan called Wyoming that feels it has too many payday lenders. They want to spread them out according to this story:
Wyoming has so many roadside signs and shops advertising it that the city’s Downtown Development Authority is exploring regulations to limit the so-called “payday” lenders on 28th Street SW. A possible rule of thumb would require stores be no closer than 500 or 1,000 feet.
There are eight state-licensed cash stores on 28th Street SW in Wyoming, and five are in the half-mile between Michael and Clyde Park avenues.
“It’s not so much the use (that’s a problem); it’s the connotation of having them so densely situated in any one particular area,” said Douglas Kochneff, DDA chairman and owner of Action Tire Center at 841 28th St. SW, next to Instant Cash Advance.
There must be a great need in Wyoming, Michigan if there are so many stores.
Bad journalism of the day award
September 3, 2008 | Consumer Federation of America, Michigan, customers, industry, industry critics, media coverage, personal finance, states | Comments (0)Goes to Susan Tompor at the Detroit Free Press. Below are some statements she makes in her piece with the Payday Pundit’s comments in bold:
Debt traps — including high-cost advances on a paycheck — are crushing many Michigan consumers.
PP: She provides absolutely NO evidence of this, not even the usual anecdotal nonsense we’ve come to expect.
As many consumers scramble to pay bills, it’s wise to pay attention to just how costly quick-fix loans can be compared with other credit.
PP: She makes NO comparisons to other credit.
“…payday loans agencies are an option for many of us.”
July 29, 2008 | Michigan, customers, industry, positive media coverage | Comments (0)This fair-minded and articulate news article on WLUC in Upper Michigan makes a great point:
Payday loan institutions can also mean good news for those with damaged credit. Not only is it easier to get approved for a smaller loan, but most cash advance agencies can actually help you re-establish credit. Many locations offer rechargable credit cards endorsed by major companies and will also provide letters of recommendation for customers in good standing who are looking to make larger purchases outside the scope of payday lenders.
The Payday Pundit is glad to see some reporters taking the time to learn about the payday loan service and writing sensible articles.
More stellar advice from payday loan critics
July 22, 2008 | Michigan, alternatives, personal finance | Comments (1)It’s really amazing to see what payday loan critics are coming up with as alternatives to the dependable, transparent, regulated industry they malign. The latest in brainstorming surfaces in Natalie Zimmermann’s single-sourced story on WLUC 6’s website (serving Upper Michigan). Zimmermann’s reporting relies entirely on Mr. Stuart Baker, a “financial consultant.”
Though not the most advisable course of action, Baker said that even a missed payment might charge less in late fees than a cash advance would cost.
Wow. Yes, a late charge could be less than a cash advance fee — as a short term expense. But, in what world is missing a payment a sound financial decision?! In the long term, the consumer will take a hit on their credit record or credit score and if that payment is for credit card debt… well, universal default will ruin any consumer’s day.
This “expert” was not the best source of knowledge and advice for this article. Perhaps next time, Ms. Zimmermann, you could get a comment from someone in the industry? Or maybe, at the very least, someone who knows what they’re talking about?
“It’s tough to be in the payday loan business…”
June 9, 2008 | Michigan, media coverage | Comments (0)This story out of Michigan contradicts others that say payday lenders benefit from an economic downturn:
The cash advance industry over the past year is on the decline, said Steve Leach, the chief executive officer of Grand Rapids-based Instant Cash Advance Corp. Instant Cash Advance has a Saginaw Township location at 3037 Bay Plaza.
“We suspect the stimulus checks are helping people,” he said.
Another possible reason: the state’s unemployment rate, which in April hit 6.9 percent.
“It’s tough to be in the payday (loans) business because unemployment is high,” Leach said. “We can’t underwrite this clientele, because they don’t have income (to pay the loan back).”
As a result, Instant Cash Advance has seen a growth in “uncollectables” and an increase in bankruptcies over the past year, Leach said.
“We’re in pure tough times,” he said.
