A $600 million payday loan?
June 26, 2008 | Uncategorized | Comments (0)Seems excessive to the Payday Pundit. We think this Nevada editorial is using sarcasm. From the piece:
Lt. Gov. Krolicki has stated he will have to find the money elsewhere to fund the public health programs, but added “there is time for that.” That is a pretty nebulous statement, as where exactly is “elsewhere,” when the governor and his staff are cutting social services programs left and right? The explanation given to me by the Lt. Governor is that he would ask that $4.5 million be set aside out of the $600 million buy-out of tobacco money for the social service programs for a year or two, and then get it from the general fund afterward, since the economy would be improved. What kind of guarantee is that? You don’t need to be a mathematical genius to figure out why you would give up a 25 year funding stream of $1.2 billion dollars (legislated in 1999) for a pay day loan of $600 million as a quick fix for the state budget for 2009-2010.
Ohio’s Reject H.B. 545 Committee Submits Revised Summary Language
June 26, 2008 | Ohio | Comments (1)From the statement,
“We have revised the language to include the exact wording and format of the “Terms and Conditions for making short-term loans” language which was used by the independent Legislative Services Committee and the source document which legislators relied upon to vote,” said Kim Norris spokesperson for the Reject H.B. 545 Committee.
By law, the Attorney General is required to approve summary language based on the language of the bill – not subjective observations.
Ohio newspaper advocates against democracy
June 26, 2008 | Ohio | Comments (0)These editorial writers at the Newark Advocate are continuing their jihad against the payday lending industry. This time they’re telling citizens not to sign the petition to help the referendum get on the ballot.
“The Politics of APR”
June 26, 2008 | Alabama, alternatives, industry | Comments (0)Over at paydayfacts.org, they discuss the “politics of APR” and take on the Aniston Star, the Alabama paper doing a series on payday lending this week.
What do payday loans, asbestos and lead have in common?
June 26, 2008 | industry | Comments (0)According to Ralph Nader, these are “ghetto” issues. We discussed Nader’s crazy rant yesterday, but now that it’s been picked up by about 1000 media outlets, we thought we post the follow-up with Obama’s response. From the piece:
“Ralph Nader hadn’t been paying attention to my speeches, because all the issues that he talked about — whether it be predatory lending, the housing foreclosure crisis . . . I’ve devoted multiple speeches,” Obama said. “Ralph Nader is trying to get attention. I think it’s a shame because if you look at his legacy in terms of consumer protections, its an extraordinary one.”
Obama’s call for a national 36 percent annual rate cap is a threat to the payday lending industry’s survival. However, Nader’s attempt to make it a racial issue is nuts.
Alabama customers speak out
June 25, 2008 | Alabama, customers | Comments (0)Borrow Smart Alabama website now features customer testimonials…
Listen as our customers tell you in their own words about the services we provide. Along with us, they are often portrayed in quite a negative light. Nothing could be more untrue. Our customers are people from all walks of life who have used our services wisely. They are not people who are unable to make wise choices, preyed upon because they are poor, less intelligent or otherwise unable to make sound decisions. To the contrary. Listen for yourself! As you listen, one thing becomes very clear. Our customers make wise, logical choices and sincerely appreciate the service we provide. If this service was not available where would they turn? We greatly value our customers, their confidence in us and their friendship.
Banks must be an eyesore
June 25, 2008 | alternatives, industry | Comments (0)Great paragraph in a story about a new commercial development in Fairfax, Virginia. Summing up the views of local residents, the article says:
They did not want to see check-cashing establishments, salons, pawn shops, dry-cleaners, fast food franchises, tattoo parlors or banks occupy the space.
The Payday Pundit just loves banks being thrown in with tattoo parlors. And what’s with salons? Is there a salon glut?
APR doesn’t provide a “clear picture of the product”
June 25, 2008 | alternatives, positive media coverage | Comments (1)An article in the Politico, ”Consumers fight for choice in overdraft protection” discusses efforts to require banks and credit unions to disclose their fees in terms of APR.
Financial institutions and their trade associations plan to write their own comment letters on the Fed rules. Banks and credit unions alike object to bringing overdraft loans under Truth in Lending rules, arguing that expressing the charges in terms of an APR would not help consumers.
“We’re all for disclosure,” said Mary Dunn, the Credit Union National Association’s senior vice president and associate general counsel of regulatory advocacy.
But disclosing the APR wouldn’t give consumers a clear picture of the product, she said, given its short-term nature and particular structure.
“It’s going to look like the percentage rate is really exorbitant when it isn’t,” based on the cost to the consumer, she said.
Sound familier? Like the Payday Pundit always says, disclosing short term credit products with annual rates is like Hertz or Avis quoting you an annual car rental fee when you only want it for a weekend.
Internet lenders falling through cracks in Canadian law
June 25, 2008 | industry, media coverage | Comments (0)As this story reports, it’s not so easy bringing Internet lenders in line with payday lending laws. The industry has continually warned that bans or crackdowns on payday lenders drive consumers into an unregulated environment. From the piece:
“It seems they are slipping through the cracks,” federal New Democrat industry critic Peggy Nash said of online payday lending companies yesterday. “It’s the bricks-and-mortar that ends up getting dealt with.”
CFSA member companies follow strict Best Practices for their Internet lending.
He’s baaack!
June 25, 2008 | industry | Comments (0)That would be Ralph Nader throwing “payday loans” into a crazy rant about Barack Obama trying to “talk white.” You have to read it yourself to understand the complete depth of craziness.
