Virginia payday lending law takes effect on Tuesday
June 28, 2008 | Uncategorized | Comments (0)Read all about it here.
North Kansas City places “interim restrictions” on payday lending
June 28, 2008 | Missouri, media coverage, positive media coverage | Comments (0)Here’s the Kansas City Star’s piece. From the article:
Restricted uses include industrial businesses, any parking lot with frontage on Burlington, pawn shops, car title lenders, check-cashing lender operations and any motor vehicle repair or service shop.
The restrictions, however, do not apply to any such businesses that are already there.
Why can’t reporters get it right?
June 28, 2008 | Alabama, media coverage | Comments (0)Where to begin with this story out of Alabama? First, the story is supposedly about payday lenders and the first person the paper quotes is a title lender. Second, the story repeats the Center for Responsible Lending’s lies about the average customer. On the other hand, the reporter did present this side of the story:
Payday advance loans can be a valuable way to manage an emergency. But if the borrower is not careful, quick loans like these can create a cycle of debt that is difficult to break. In hectic times especially, it is important to make good choices for managing and paying debt.
“We got $200, and only have to pay back $220 in two weeks,” said Timmy Brigner, a customer at Advance America, another payday loan business. “Gotta pay the bills.”
The Payday Pundit appreciates this reporter’s attempt at balance, but thinks he should have learned more about the industry by calling CFSA before writing the piece.
Ban bears and payday lenders, but support keno?
June 27, 2008 | Ohio | Comments (4)According to the WSJ, “times are tough in Ohio. The state has lost 200,000 manufacturing jobs since 2000, home foreclosures are soaring, and real family income is lower now than in 2000.”
Yet, elected officials in Ohio have voted to put people out of work, are crafting legislation to ban bears in the workplace and are trying to legalize keno. Payday Pundit thinks they need a lesson on priorities.
“The economy and the economy and the economy”
June 27, 2008 | Uncategorized | Comments (2)…Says McCain during his recent visit to the Buckeye State.
Q: What are the three key ingredients for winning Ohio?
A: The economy and the economy and the economy … Ohio leads the nation, tragically, in the loss of home ownership … the flight of manufacturing jobs, the list goes on and on … it’s the economy, not so stupid.
Q: What must a candidate do to win on the economy?
A: Develop the plan of action to allow (Americans) to stay in their homes, educate their children and have a job.
Too bad the elected leaders of Ohio turned their backs on the economy and instead chose to eliminate an industry and put 6,000 people out of work.
It Doesn’t Walk Like A Duck, so it Definitely is Not Usury
June 27, 2008 | industry critics | Comments (0)
In his latest column, Lawrence Myers debunks allegations of usury, an excerpt:
One of the favorite claims of payday lending opponents is that payday loans are “usurious”. We often see this claim made by the ignorant, though well-meaning, members of various “Interfaith Coalitions”. The religious groups just love to band together to attack the moneychangers, as if we were somehow still ensconced in Biblical times.
Well, it’s the 21st century now, folks. Time to clue in. Payday loans aren’t usury, whether you define it with a standard secular dictionary or even pull from Scripture.
When money is tight, she said, she is grateful for payday loans
June 27, 2008 | media coverage | Comments (0)That’s from an ABCNews.com story on payday lending. It’s a lengthy piece and relatively fair and balanced compared to most stories. The Payday Pundit’s favorite passage:
“If bounced check fees were $10 [instead of $35], this industry wouldn’t exist,” he {Industry spokesman Steven Schlein} said. “If banks and credit unions made small loans, this industry wouldn’t exist. For many people, this is absolutely the only way to get a $300 loan.”
“{Payday lenders} do it because it’s profitable.”
June 27, 2008 | personal finance | Comments (0)Ah, duh. As opposed to all the other business that do it because they have nothing better to do. This article from Indian Country is outrageous in two ways:
- First, it totally distorts the recent hearing in the Senate Indian Affairs Committee. The author says, “…there were more witnesses from the payday lending sector than consumer advocates.” There was exactly one witness from the payday lending industry who was accompanied by a researcher. There were several consumer consumer groups and Native American groups represented.
- Second, the author says, “it struck me how similar the landscape is on the borders of both military bases and Native communities, especially reservations: payday lenders and pawnshops as far as the eye can see.” This is a lie. The charts that were presented at the hearing showed the payday lenders were located in the populated areas of Indian country states, not near reservations.
It’s been apparent for years that critics of the payday lending industry have to distort, exaggerate and use anectodal information because the facts just don’t support them. This is another great example.
Arkansas update:
June 27, 2008 | Arkansas | Comments (0)This newspaper requires a subscription, so we just posted the lead to the article here:
101 payday lenders close since March
More than 100 payday-lending stores in Arkansas have closed since they were ordered by Attorney General Dustin McDaniel in March to cease operations, the chairman of a group opposed to the practice said Thursday.
One city council backs down on payday lending restrictions
June 26, 2008 | Uncategorized | Comments (0)From the Alexandria (Virginia) Times:
Predatory Shakedown
Councilman Justin Wilson has abandoned his bid to raise taxes on car-title lenders and payday lenders to the highest possible rate available under Virginia law. Instead he offered a “voluntary program” Tuesday night in which industry officials agreed to make ongoing commitments to fund financial literacy programs in Alexandria.
Wilson said he felt this was “a good start” and that he expected the General Assembly to take up the issue of car-title lenders next year. Meanwhile, he said, the city’s next legislative packet could include support for a car-title reform effort similar to the one crafted for the payday lending industry earlier this year. He offered the motion as measure that would “pass by indefinitely” so he could threaten to bring the tax hike at any time.
“There’s no reason we can’t move forward with this in the future,” he said. “This is not done.”
