Petition filing freezes Ohio law
August 29, 2008 | Ohio, industry, media coverage, regulation, states | Comments (0)This short piece explains how the law would be put on hold until voters go to the polls in November.
Arthur Ham versus “Arthur Ham”
August 29, 2008 | industry | Comments (0)For those of the Payday Pundit’s readers who check out the “comments” section, you’ll find numerous comments from payday lending critic “Arthur Ham,” a pseudonym for some CRL-type activist. In the essay, “The History of Credit” there’s a section on the real Arthur Ham:
It is interesting to read about the history of Arthur Ham, a graduate student of Columbia University, who, in the early 1900s, studied small-loan lenders in detail.
Ham first concluded that finance companies of the day were causing a hardship on workers by charging high rates of interest.
However, after he led the campaign to pass usury laws to limit the amount of interest that could be charged, Ham completely reversed his position.
He originally felt, as do many people then and today, that high interest rates were an indication of shameless profit. However, as he became better acquainted with the loan industry, he discovered how interest rates for these loans were determined and why they were necessary.
Since the new lower, “protective” interest rates enacted were too low for small finance companies and philanthropic lenders to take on the risk of low-dollar borrowers, people had no place to turn for these small loans. After realizing what was happening, Ham moderated his views and worked with lender organizations to find a way for small finance companies to exist while eliminating the undesirable “loan shark” element.
Sounds like Arthur Ham would have supported payday loans.
Ohio alert! Signatures to be delivered on Sunday
August 29, 2008 | Ohio, customers, employees, industry, local issues, regulation, states | Comments (1)For immediate release:
Friday, August, 29, 2008
Ohioans For Financial Freedom
Makes Announcement on Signature Collection Efforts
Vote No on Issue 5
Who: Ohioans For Financial Freedom (committee of Ohio citizens, consumers and businesses).
What: An announcement regarding the status of signature collection efforts and campaign to inform Ohioans their financial choices will be taken away, along with 6,000 good-paying jobs.
Where: Ohio Secretary of State’s Office
180 E. Broad Street
Columbus, Ohio
(outside /4th Street side)
When: Sunday, August 31, 2:00p.m. – 2:30p.m.
Why: Delivery of signatures to qualify for the Nov. 4 ballot giving Ohio voters the opportunity to
Vote No on Issue 5.
Visuals: See Ohioans deliver box after box of the thousands of signatures to the Ohio Secretary of State.
Background:
Ohioans For Financial Freedom circulated petitions in Ohio with summary language approved by the Attorney General. A Vote No on Issue 5 will:
- Repeal section (3) of H.B. 545 offering consumers more lending options
- Allows for short-terms loans to be made under H.B. 545
Repealing Section 3 of H.B. 545 means protecting 6,000 good-paying jobs with benefits, protecting Ohioans’ financial freedom and protecting consumers’ rights to privacy about their personal financial choices.
To certify for the ballot, 241,365 valid signatures from 44 Ohio counties is required to be filed by August 31.
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What’s going to happen to us?
August 29, 2008 | Ohio, employees | Comments (0)Payday lenders in Ohio are facing a bleak future. Tax paying businesses shuttered, leases broken, employees laid off. It’s scary how quickly the government can take one’s livelyhood away.
No passing grades for states with financial choices
August 29, 2008 | Consumer Federation of America, Illinois, Missouri, industry critics, regulation | Comments (0)Consumer Federation of America, Consumers Union and the National Consumer Law Center have given two more states failing grades for offering choices to consumers. Illinois and Missouri received straight F’s for having a multitude of short term credit options available to consumers.
The more, the better.
August 29, 2008 | Mississippi, alternatives | Comments (0)Here’s a story from Mississippi about a new payday lending alternative. The Payday Pundit thinks this is great. The more choices consumers have when it comes to short-term financial products, the better! However, because you’ve come up with an alternative doesn’t mean you should replace existing products. Let the market work and let consumers choose which product they like better. There is one thing in this announcement that makes this pundit think that this new loan will not replace payday loans outright:
There are no fees to participate in the BankPlus program, but a credit check is required, and the credit score affects the loan amount for which a customer is approved. Customers also must complete a financial literacy program before they receive the loan and they receive credit counseling once they are approved
One reason people take out payday loans is because there is no credit check required. Imagine if you’re a busy person and need money today, something tells me you won’t have time to receive credit counseling before you need the money.
Update on Fed overdraft rules process
August 28, 2008 | alternatives, industry | Comments (0)WalletPop has the story.
The “big pink elephant in the room.”
August 28, 2008 | industry, regulation | Comments (0)Our friends at pdlblogspot.com have a new post.
Failing to give choices returns a passing grade
August 28, 2008 | Consumer Federation of America, Massachusetts, regulation, research | Comments (0)Boston’s National Consumer Law Center and Washington’s Consumer Federation of America give the Bay State two F’s for giving their citizenry financial choices. There is something very wrong with this picture.
Borrowers know the terms and still take out payday loans
August 28, 2008 | Deseret News, Utah, best practices, customers, industry, regulation | Comments (2)I don’t understand why the anti-payday lending groups can’t wrap their heads around this one.
Payday lenders are extremely clear about what taking out a loan will cost. They have to be, in many states what they tell borrowers is regulated and must be extremely clear. For CFSA member companies, according to CFSA’s Best Practices lenders need to show borrowers in writing and on big posters in their stores exactly what the terms are. Matter of fact, studies CFSA has conducted tells us that consumers choose payday loans because it is very clear.
To recap:
Lenders are up front about the terms of the loan.
Borrowers understand what the loan will cost them.
Borrowers still choose to take out the loan.
Anti-payday lending groups are confused, demand that payday loans be banned because borrowers don’t understand the terms of the loan.
