Speaking of a waste of money…
July 27, 2010 | Cincinnati Enquirer, Financial Reform Bill - CFPB, Ohio, best practices | Comments (0)Mary Hulburt from Consumer Credit Counseling Services–an organization which charges consumers to renegotiate their debt for them–has an oped in the Cincinnati Enquirer today where she mentions, among other things, payday loan debt.
She could have just directed the individual back to the free extended payment plan at payday loan stores, but then I guess the CCCS wouldn’t have gotten its cut. Looking out for consumers’ best interests indeed.
No “bulldozing” reform
May 27, 2010 | Ohio, industry, regulation | Comments (0)I don’t understand the headline of this editorial from Ohio, but I get the drift of what they want:
The intent of the reforms, however, is not to shutter all of the corner-store, fast-cash businesses. Clearly there is a need for quick short-term loan services, or payday lending would not have mushroomed into a growth industry in the state and the nation.
Intent aside, if the result is that payday lending stores close, then it’s not “reform,” it’s a ban.
Comment of the Day
May 13, 2010 | Ohio, industry | Comments (0)A reader comments on the Ohio post below:
The comments in the article show that they dont care about keeping jobs. REALLY????? you are going to wish we are all closed?? I wish you would lose your election!!!! I’ll make sure I stand right next to you in the unemployment line!!!VOTE THEM ALL OUT OF OFFICE!!!
Ohio measure passes House
May 12, 2010 | Ohio, industry, regulation | Comments (4)From the story:
After a spirited debate this afternoon, the Ohio House passed a bill that would cut the fees payday lenders can charge for short-term loans.
With most Democrats joining more than a handful of Republicans, the House voted 60-37 to prohibit payday lenders from issuing checks and then charging customers to cash them, and would limit origination and credit-check fees on loans $1,000 or less to once every 90 days.
The measure now moves to the Ohio Senate for consideration.
Here’s to hoping cooler heads prevail in the Senate.
Floor vote today in Ohio
May 12, 2010 | Ohio, regulation | Comments (0)House Committee voted yesterday. From the story:
A bill to clamp down on the fees charged by payday lenders in Ohio is headed to the full House for a vote today, despite pleas yesterday from some store owners and black community leaders who argued it would shut off needed credit.
Ohio & “loopholes”
May 11, 2010 | Ohio, industry, regulation | Comments (0)A story about the so-called loophole legislation in the Marietta Times:
Jamie Fulmer, director of investor relations for South Carolina-based Advance America Cash Advance Centers Inc., said the proposed bill continues to threaten the payday lending industry in Ohio.
“I’ve always advocated for operating in a regulatory environment, but I think this (and HB 545 in 2008) is a multi-layered attack to put our industry out of business,” he said. “And if they close us down, the consumers would lose access to short-term financial solutions.”
Fulmer noted that after the 2008 legislation, more than 700 “storefront” payday lending businesses closed in Ohio with a loss of more than 2,500 jobs.
“a vital service”
May 9, 2010 | Ohio, industry | Comments (1)Checksmart Financial’s CEO Ted Saunders in today’s Toledo Blade:
Independent research validates the consumer benefits of short-term credit. Studies by the Federal Deposit Insurance Corp. and George Washington University’s business school conclude that consumers make measured decisions, weighing short-term loans against alternatives in the marketplace.
Customers choose our service because it can save them money – particularly compared with the costs of overdraft protection, unregulated offshore Internet loans, or fees associated with bounced checks or late bill payments.
Relentless in Ohio
May 9, 2010 | Ohio, industry | Comments (1)The silly editorials won’t stop coming. From today’s Mansfield News Journal:
House Bill 486 is a law that absolutely makes sense at this time in our state. It stops the economic predators who have found a way to take advantage of those who are the most vulnerable.
It absolutely makes sense to lose more jobs and limit access to credit for working people?
By request
May 7, 2010 | Ohio, industry | Comments (0)The Ohio story we had trouble linking to yesterday..
Noise is Ohio
May 3, 2010 | Ohio, industry, regulation | Comments (0)We’ve been ignoring this, hoping it would go away. From the Zanesville Times Recorder:
A group of Ohio lawmakers wants to pare down the fees payday lenders can charge their borrowers.
Rep. Matt Lundy, D-Elyria, said payday lenders still manage to take advantage of customers despite 2008 legislation that capped interest rates at 28 percent.
Lundy introduced the Small Loan Consumer Protection Act earlier this month with Rep. Gerald Stebelton, R-Lancaster. This is Lundy’s second attempt to rein in the industry. A much larger bill remains stalled in the House Financial Institutions, Real Estate and Securities Committee.
This bill, narrower in scope, was assigned to the Consumer Affairs and Economic Protection Committee, where Lundy is the chairman and six members are co-sponsors. Lundy said he is confident there will be enough votes to get the bill through the House and to the Senate.
