Taxpayers oppose payday lending bans
April 21, 2008 | Ohio, industry, positive media coverage, regulation, states | Comments (0)The National Taxpayers Union has posted a copy of a letter they recently sent to members of Ohio’s House of Representatives.
The letter calls on Ohio lawmakers to “put their trust in the free market and the common sense of working people who understand that taking out a payday loan can be a sound financial option, often cheaper than a bounced check fee or a utility bill late charge. A punitive interest rate cap will not help consumers – it will make credit less accessible to Ohioans and cost taxpayers millions of dollars. A higher tax burden is something that NTU’s 13,600-plus Ohio members, and our 362,000 members throughout the country, actively oppose.
Ohio payday lending hearing draws crowd
April 21, 2008 | Cleveland Plain Dealer, Ohio, customers, employees, industry, media coverage, positive media coverage, regulation, states | Comments (0)As reported by the Cleveland Plain Dealer’s Round the Rotunda,
Real people – not the paid-to-be-here, fiddling-with-their-Blackberrys-crowd – flocked to the Statehouse Thursday for a committee hearing on a payday lending bill that would cap interest rates for the short-term, high-interest loans at 36 percent.
And we do mean flocked: The large hearing room didn’t have an empty seat, the hallway was lined and a dreary overflow room where you could only listen to a speaker even drew takers.
Listen to media coverage of hearing
The supporters of the payday advance industry (employees and customers) outnumbered those who want to ban payday lending in Ohio. Turns out those who work in the industry and those who use the service are the people who would be most impacted by a 36% rate cap. And the people who legislators should listen to most.
Ohio blogger ponders payday lending bill (HB 333)
April 18, 2008 | Ohio, industry, positive media coverage, regulation, states | Comments (0)Great post by Wondering Heretic if you have a few minutes to read. A few excerpts:
In short, the demand for high interest loans for high credit risk people will always be there. The issue is how will this demand be met? It can be through the government controlled, legally restricted, and relatively gentler auspices of Payday Lenders, or it can come from another less official source.
My fear is not so much as to what will happen to the Payday Lenders as much as to what will replace them. Like my father’s day of “four for five” someone will be providing the funds to the people who perceive that they need them. If the poor can no longer have access to official sources then the risk is that they will entangle them in “unofficial” ones. By eliminating legally controlled and restricted sources you may very subject them to uncontrolled, unrestricted, and illegal ones.
Edmund Burke was only partly correct. Sometimes all that is necessary for the triumph of evil is for good men to do the wrong thing, or even the right thing the wrong way or at the wrong time.
Syndicated radio talk show host Tom Leykis defends payday lending
April 18, 2008 | California, industry, positive media coverage, regulation, states | Comments (0)Leykis discusses (and opposes) attempts in California to further regulate payday lenders. While the Payday Pundit disagrees with Leykis’ characteraztion of payday lending customers, he does have an interesting perspective. You can listen to the full program at: http://transsurvivalist.blogspot.com/2008/04/tom-leykis-defends-payday-loan.html
Ohio Headlines: Need for payday-loan cap doubted
April 18, 2008 | Columbus Dispatch, Ohio, industry, media coverage, regulation, states | Comments (0)Rep. Sandra Williams, a Cleveland Democrat, is quoted saying ”I’m not real convinced that 36 percent is the best way to go.” Williams also says, “I do not want to run these people out of business” and cites concerns over lost jobs and the lack of available credit.
Ohio: Payday lending hearing in House Committee
April 17, 2008 | Ohio, Springfield News Sun, industry, media coverage, regulation, states | Comments (0)A hearing in the House Financial Institutions, Real Estate & Securities Committee just ended. This is the first story. We’ll provide more updates as they come in, but D. Lynn DeVault, CFSA President, testified on behalf of the payday lending industry. The word on the street is she did a great job talking about the business of payday lending . DeVault explained in detail why 36% APR would force lenders in Ohio to shutter their doors.
“Responsible payday lenders have helped millions of Kansan familes”
April 15, 2008 | Kansas, The Kansan, industry, media coverage, positive media coverage, regulation, states | Comments (0)Tom Linafelt of QC Holdings was obviously annoyed with an uninformed editorial in the Kansan newspaper. Here’s his letter to the editor, which goes on to make the key points that:
- The vast majority of Kansan use payday loans responsibly, and;
- Banning payday loans will force customers into more costly options.
Protecting access to credit in California
April 15, 2008 | California, industry, regulation, states | Comments (0)Legislators in California have debated the issue of payday lending and are in agreement that consumers need reasonable protections, but to prohibit payday lending wouldn’t help anyone.
I think that there is need for increased consumer protection. And I’d like to see, but I’m not interested in seeing a prohibition,” said Assemblywoman Liz Wolfe.
To see poor journalism at its finest, watch Michael Finney, from Sacramento’s KGO ABC 7, and the anchors chit-chat before and after the story. Their comments demonstrate they have not only never used a payday loan, but did not take the time to speak to any customer who had.
CFSA statement on Virginia payday lending legislation
April 15, 2008 | Virginia, industry, regulation, states | Comments (0)“We appreciate the effort of the General Assembly and Governor to forge a compromise on a complex issue; the result is one of the most restrictive payday-lending laws in the country. In addition, Governor Kaine deserves credit for acknowledging that the work of the General Assembly was difficult and that the compromise developed during the legislative process represented a careful balance, which should now be given the chance to work.
“Still, we continue to have concerns about how lenders will be able to operate under this regulatory framework and how consumers will adjust to what is essentially a new credit product. The additional regulations included in this legislation change what consumers tell us they like about payday loans – that they offer a simple, transparent and straight-forward avenue for managing unexpected expenses. Some lenders will no doubt be forced to close as a result of this new law, and others will be significantly impacted.
“We have always maintained that the best consumer safeguards ensure continued availability of payday loans while protecting those who misuse them and other financial products. But we have difficulty with painting all borrowers with the same broad brush; this legislation does that, and unfortunately penalizes responsible borrowers. It does not effectively balance protections from excessive debt and preserving access to credit.
“Our customers recognize that payday loans are often their least-costly option, helping them to avoid unregulated alternatives like off-shore Internet lending operations as well as recurring debt or stiff fees associated with credit cards, bouncing a check or neglecting a bill.
“Opponents of our industry have always been singularly focused on the elimination of this industry through outright repeal or by placing prohibitive restrictions on the product we offer to consumers. Virginians deserve the freedom to make their own financial decisions, choosing credit products that best suit their needs and their families.
– Tommy Moore, Executive Vice President, Community Financial Services Association
26,000 constituent letters delivered to OH legislators
April 11, 2008 | Ohio, customers, industry, regulation, states | Comments (1)More than 26,000 letters from payday lending customers and employees have been delivered to state legislators in Ohio. The customers who’ve actually used the service should be a vital part of the payday lending debate.
From a resident of Columbus, OH:
Asthtabula County doesn’t have a lot of good jobs for people. You do run short paycheck to paycheck! That’s just a fact of life. The economy is terrible. Everything goes up–utilities, gas, food, etc.–but your paycheck! Banks don’t give out loans like they used to (signature loans) or any other small amounts for that fact…I make my own financial decisions and tehse establishments are at least there for us to choose from. Taking these places away would really make things bad for myself and so many others in Ohio.
From a woman in Knox County, OH:
I have used a payday advance and am glad it was there to help me…It is quick, and I don’t have to use any co-signers, collateral, etc. In many cases, these advances help pay for my family’s medical needs….I would like to have the freedom to manage my own finances (including non-intrusive loans) that we, as Americans deserve.
Let’s hope legislators take to heart the opinions of their constituents.
