Wow! Fed exec says payday loans “properly priced”
November 14, 2008 | research | Comments (0)Among the misunderstood elements of the housing crisis is the role of subprime mortgages, said {Paul S. }Mr. Willen, who cautioned that he was speaking yesterday for himself and not for the Federal Reserve Bank. Subprime loans, which are typically risky loans, did not cause the housing crisis on their own, he said. Payday lenders make risky loans, too, but even if they only get 50 cents back for every dollar they lend out, they still make money because they properly price the loans, Mr. Willen said.
We’ve been shouting this from the rooftops, but it’s great to see that even a Federal Reserve Bank of Boston exec agrees. Here’s the whole story.
San Francisco’s KPIX TV misses the mark
October 9, 2008 | California | Comments (0)In her latest “consumer watch“ Sue Kwon warns against payday loans, but fails to mention that without access to payday loans, the couple highlighted in the story would have lost their home through foreclosure. For what it’s worth, the maximum amount of a payday loan in California is $255. Ms. Kwon is correct about one thing, though, consumer credit is tightening, banks are imposing higher standards on potential borrowers and consumers facing emergency situations have fewer and fewer options.
Online forum for payday lenders, vendors, customers, employees
October 8, 2008 | industry | Comments (3)To see what’s currently being discussed or to join the discussion, go to The Payday Loan Forum.
