Against compromise
December 14, 2009 | Ohio, industry | Comments (0)I guess the Toledo Blade never heard the phrase “politics is the art of compromise”:
So Mr. Lundy {Sponsor of rate cap legislation}, instead of pushing a bill to do what voters wanted done, is having to work out compromises to please Republicans in the House so that his legislation will get a fair hearing in the Senate. He expects a House vote by January at the latest.
This paper still exists?
November 22, 2009 | Ohio, industry | Comments (0)I thought the Cleveland Plain Dealer was going out of business. An editorial today criticizes the legislature for “lethargy” in not placing more restriction on payday lending:
Practically speaking, lenders remain able to charge outrageous APRs because the General Assembly hasn’t closed loopholes by passing a pro-consumer bill introduced June 4 by Rep. Matt Lundy, an Elyria Democrat.
What voters intended was to uphold a 28 percent APR cap on “short-term lending.”
What payday lenders did in response to that vote was to put aside their “short-term lending” licenses and get themselves licensed under Ohio’s “small loan” and “mortgage loan” laws, and keep right on charging loan-shark rates.
Yes, payday lending evolved and now operates under other Ohio licenses. The legislature looked at the economy, the number of citizens employed in the payday lending industry, and number of people who need short-term loans and came to its senses. No lethargy involved. However, the Payday Pundit will lethargically blog over the next week as he takes some time to be with his family over the holidays.
For the CFPA
November 19, 2009 | Ohio, federal legislation, industry | Comments (0)A “consumer” group letter in today’s Newark (Ohio) Advocate:
Finally, there may be some relief on the way — H.R. 3126, the Consumer Financial Protection Agency Act of 2009. This bill would create an agency whose sole job would be to look out for consumers as they take out a mortgage, accept an offer for a new credit card or pay off a loan from a bank or check-cashing company. The agency would be empowered to ensure that credit and payment products do not include features that harm consumers like pre-payment penalties, unjustified fees or hair-trigger interest rate increases.
One of the biggest fears of critics of the CFPA is that people like this letter writer will end up staffing the agency.
Comment of the Day
November 9, 2009 | Ohio, customers, industry | Comments (0)This was posted under the Columbus Dispatch story discussed below:
I use a lending store nearby, maybe 4 to 6 times a year. sometimes you just a little extra money and thank god they are there to help. I feel bad for the people who are stuck in a cycle. but I’ve been there. usually if you talk to the people you owe, they’re more than happy to work with you. being up front to your creditors will help you get out of the cycle. the fees may seem kinda high. it’s too bad they (owners) and government people can’t come to an agreement to a number in between.
The only way to get by
November 9, 2009 | Ohio, industry | Comments (0)That’s what some customers told the Columbus Dispatch:
“This is like a lifesaver at times,” said Cheryle, 52, after getting a $500 loan. She has been coming to the store on and off for more than a year, and recently, after seeing her paycheck reduced because of an injury, she’s been taking out and paying off loans every two weeks.
“I don’t have a choice but to come here. I have a child to take care of and bills to pay,” she said. “I get very good service here.”
People living paycheck to paycheck have tough choices to make. But they know better than elites what the best choice for their family is.
Well, yea
November 8, 2009 | Ohio, industry | Comments (0)Ohio payday lenders are pointing to bank fees as the reason payday loans are needed. From the story:
In Ohio, payday lenders are pointing to bank fees as a reason state lawmakers should not try to crack down again on them. Some lawmakers want to go after the banks too, but they are limited by federal law.
State Rep. Tyrone K. Yates, D-Cincinnati, has proposed capping overdraft fees at $5 per transaction and not allowing banks to offer overdraft protection without a customer’s permission. But the state Department of Commerce said the bill would apply only to state-chartered banks, which include Fifth Third and a host of small, community banks.
Exactly, federally charted banks would still charge what they want. Transparency is the key.
Mistakes were made
November 5, 2009 | Ohio, alternatives, industry | Comments (0)From the story:
Canton officials likely will change the wording of a moratorium that erroneously implies pawn shops and other establishments must close this week.
Oops.
Attention: Ohio readers
November 4, 2009 | Ohio, alternatives | Comments (0)Jim Siegel at the Columbus Dispatch wants to know if you’re unhappy with bank fees.
Ohio acton?
October 29, 2009 | Ohio, industry | Comments (2)This is on the agenda of the Ohio legislature:
HB 325 PAYDAY LENDING (Yates) — To repeal the Short-Term Loan Act and to prohibit payday lending by entities other than traditional financial institutions.
Not a loophole!!!!
October 7, 2009 | Ohio, industry, regulation | Comments (1)Sorry to shout so early in the day. This headline out of Ohio caused it.
