Wisconsin’s Gordon Hintz to run for speaker?
August 25, 2009 | Wisconsin | Comments (0)According to a new column on BloggerNewsNetwork:
Democratic sources tell me that Hintz is using the payday loan issue to make a name for himself in the Legislature, and run for Assembly Speaker.
If Hintz truly wants to make a name for himself, he should do so in a manner becoming an elected official — one that doesn’t blatantly stink of ambition. If he wants to make an issue out of payday loans, he could do so just as easily by introducing common sense consumer protections. Why ban the product outright? In case he hasn’t heard, there’s a huge middle ground between banning something and having it unregulated.
Getting thrifty with it
May 12, 2008 | alternatives, industry | Comments (0)In her latest column, Michelle Singeltary of the Washington Post writes about a new initiative encouraging Americans to be thrifty and save.
Note that one of the recomendations listed in her column is to “Encourage financial institutions to locate in low- to moderate-income neighborhoods and provide low-interest consumer loans. For example, in Appleton, Wis., the Prospera Credit Union has teamed up with Goodwill Industries of North Central Wisconsin to create GoodMoney, where consumers can get short-term loans much cheaper than they can get from a payday lender.”
Payday Pundit wants to point out that the Goodwill/Prospera credit union ( non-profit, tax-expempt) charge $9.90 per $100 borrowed (252% APR) for their “Good Money” payday loan. And this is only to break even.
Even the Goodwill payday loan alternative could not be offered under the rate caps being proposed in states like Ohio.
Credit Union official tells truth about small loan program
April 7, 2008 | Milwaukee Journal Sentinel, Wisconsin, alternatives, industry, media coverage, states | Comments (0)In the interesting article in the Milwaukee Sentinel, Eric Richard of the Credit Union National Association, argues against regulating credit unions like banks. One of the reasons?
Richard said credit unions sometimes will provide services to members even if they know they won’t necessarily make money. Fast-cash loans as an alternative to payday lenders is one example.
“We are not profit maximizers,” Richard said. “We don’t try to maximize our return on assets or returns to investors. There are different ways you regulate the different kinds of institutions.”
Of course, the payday lending industry happily competes with all comers, even against credit unions that offer unprofitable services.
Setting the record straight in the Dairy State
February 29, 2008 | Capital Times, Wisconsin, best practices, industry, media coverage, states | Comments (0)An article pennded by Dave Zweifel, appearing in today’s Capital Times – out of Madison, WI — says that state legislators need to “place some protection for the folks who all too often get suckered into small loans that wind up with triple-digit interest rates.”
This accusation might make for good copy, but is far from the truth. Payday lenders have some of the most consumer friendly disclosure rules in the lending business. Our disclosure policy states that all CFSA member-companies will prominently display posters in their stores explaining their fees, and will post this information to their company websites. Knowing the fees means that no one is getting “suckered”.
