Payday Pundit

According to this story, one bounced check led to $3000 in overdraft fees. Where are Center for Responsible Lending and nanny-state lawmakers?  Shouldn’t they be holding hearings, calling for rate caps?   

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According to the latest Department of Labor numbers, 63,000 jobs were lost in February, with the financial services industry being one of the industries hit hardest.
While some industries, like construction, were victims of a market slowdown, payday lending employees were victims of over-regulation.
In states like Oregon and Pennsylvania, the payday lending industry has been virtually regulated […]

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Payday lenders, employees and customers are testifying before the Colorado legislature in an effort to keep their livelihood and consumer finance options intact in the face of special interest groups that want to destroy the payday advance industry.  Some of the key points brought out in this Rocky Mountain News item include: 
          “Employees expressed concern […]

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David K. Musto, Philip Bond and Bilge Yilmaz, finance professors at Wharton, have authored a new paper, “Predatory Lending in a Rational World,” asking the questions, “What is predatory lending? And what are the conditions that make it flourish?”
They found three market conditions associated with predatory lending:
 
1. There is little competition among lenders
2. Property […]

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From an article on Delaware online Sunday which quotes David K. Musto, a Finance Professor at the University of Pennsylvania’s Wharton school: 
 ”Three market conditions are associated with predatory lending, Musto and his colleagues found: There is little competition among lenders, property owners are sitting on lots of equity and borrowers are poorly informed about risks.”
The payday lending […]

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Your Payday Pundit is working on a scoop that nobody in the media has yet picked up on involving the “Better Choice” program recently enacted in Pennsylvania. 
Payday advance lenders are all about free markets and competition because they ultimately bring better value to consumers.  But a close look at the Pennsylvania Better Choice program […]

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