17 Ways to Raise Fast Cash
August 26, 2008 | CNN, alternatives, media coverage | Comments (0)CNN Money lists the Best (and worst) ways to raise fast cash. Of course, they list payday lending as the last option…even below liquidating your 401K and taking a cash advance on a credit card. With a bit of education, the folks at CNN Money would recognize that paying a flat fee of $15-$17 per $100 for a payday loan is much better than many of the options they listed.
Finally, sound advice
August 26, 2008 | customers, personal finance | Comments (0)Don’t buy things you can’t afford! Don’t take out a payday loan if you can’t pay it back!
It’s not rocket science.
Let Ohio vote!
August 26, 2008 | Ohio, regulation | Comments (3)It didn’t take 241,365 valid signatures to put over 6,000 hardworking Ohioans out of a job and shutter over 1,000 tax-paying businesses. Payday lending opponents know that Ohioans prefer to make their own financial decisions, which is why they are using whatever low and underhanded tactic they can to contest the petition. For the third time this morning, whining and moaning about signature gathering.
Why so scared?
August 26, 2008 | Ohio, personal finance, regulation | Comments (0)The Payday Pundit really wonders why COHHIO and other anti-payday lending forces in Ohio are so afraid to put Issue 5 to a vote. I bet they have a feeling they will lose, which is why they keep on trying to derail efforts to let Ohioans decide in the polls. Ohioans and Americans in general don’t like being told what they can and can’t do. Making your own financial decisons is as American as apple pie.
Let the voters decide
August 26, 2008 | Delphos Herald, OH CRL, Ohio, regulation | Comments (0)You know what the great thing is about a democracy? Each and every person gets to have their say, make up their own mind and choose. Sure, Alexis de Tocqueville and Federalist Paper #10 warned about tyranny of the majority, but with the checks and balances that are in effect in this great country and in the wonderful state of Ohio, the majority vote on payday lending will be significantly more legitimate than the authoritarian move the Ohio legislature made in passing HB 545.
But that’s not even the best part, in this country we have a strong live and let live ethic. What might not be good for the goose is great for the gander. In today’s Delphos Herald, Fourth District Representative Matt Huffman describes why he voted for financial choice, even though he doesn’t think payday loans are always the best idea:
“I voted against it because I think, in some instances, it’s a product people want to have available. I don’t see a lot of difference between these loans and what happens with credit cards where people get a $5,000 line of credit and pretty soon, they’re maxed out and at 19 percent, can never pay it back. Let’s be clear: this is a bad option but it may, at times, be folks’ only option. If they need to make a child support payment or they have a medical bill or some doctor says you have to have $150 up front before he’ll see you. There are different cases where this is appropriate and most people pay it back on payday.”
Allow the voters to educate themselves, form their own opinion and vote on the matter. Give democracy a chance!
Which is bigger drain on economy?
August 26, 2008 | Dayton Daily News, Ohio, positive media coverage | Comments (0)Letter to editor published in today’s Dayton Daily News:
Which is bigger drain on economy?
In an Aug. 3 Dayton Daily News article, Sandy Theis claimed that the effort to urge voters to repeal part of Ohio’s new restrictions on the payday industry is “a drain on the economy.” That’s a classic example of the pot calling the kettle black.
On one hand, you have the payday industry, which has stores in almost every city, employs thousands of workers and provides short-term financial assistance for Ohioans in need.
On the other hand, you have supporters of H.B. 545, which shuts down the payday industry and puts the jobs of myself and more than 6,000 people at risk.
Now you tell me: Which is the greatest drain on the economy?
Jessica Tipton, Dayton
CRL steps up efforts to ban payday lending in Arizona
August 25, 2008 | Center for Responsible Lending, regulation | Comments (2)The Phoenix Business Journal reports that “200isNoReform.com” is now “Arizonians for Responsible Lending,” yet another branch of the Center for Responsible Lending and is working to strip Arizonians of their financial choices by capping payday lending at a 36% annual interest rate. The Payday Pundit has said it once and will probably have to say it a million times…payday loans are not annual loans, they are not mortgages, they are short term, low dollar loans. Applying an annual interest rate to them is akin to trying to rent a car for a weekend and the agent telling you how much it would be to buy the car. It makes absolutely no sense.
This isn’t a financial idea…this is theft
August 25, 2008 | customers, personal finance | Comments (5)Payday lenders are often accused of taking in “huge” profits and “gouging” their customers with “exorbinant” fees. With customers willing to steal and welch on agreements they have made, payday lenders often have to write bad loans off as a loss or pay for legal fees to get their money back. Payday lenders charge a set fee for their services and those fees are set by their costs, if more people are willing to cheat and steal, payday lender’s costs will rise and so will fees.
UPDATE:
It should also be mentioned that members of the Community Financial Services Association abide by the best practices which include an extended payment plan for people who can’t payback right away.
From the CFSA website:
What happens if I don’t have the necessary funds to repay the advance on my due date?
Each company has its own collection procedures, but every CFSA member company is committed to collecting past due accounts in a professional, fair and lawful manner as required by our Industry Best Practices.However, if your check is deposited and your bank returns it due to insufficient funds, you may be charged a returned check fee by your payday advance provider, if permitted by applicable law. You should also be aware that most financial institutions charge a NSF (Non Sufficient Funds) fee for a returned check and, in some circumstances, may revoke your checking account privileges.
Remember: You are responsible for full repayment of your account (including a returned check charge, when appropriate). Your payday advance company will contact you to collect the amount due and, if necessary, may turn your account over to a collection agency.
If my account becomes past due, will I face criminal prosecution?
No. In accordance with CFSA’s Industry Best Practices, member companies do not threaten or pursue criminal action against customers if a check is returned unpaid. If it becomes necessary and is appropriate, however, companies may seek civil remedies to collect past due accounts.
Can I renew, or roll over, my advance by just paying the fee again on my due date?
Some state laws allow rollovers, although most do not. Even in states that permit rollovers, CFSA member companies are limited to four rollovers or the state limit, whichever is less. Check with your local CFSA member company to determine your options.Remember: Limiting rollovers is a consumer protection designed to ensure responsible, short-term use of the service. It is important that you fully evaluate the cost versus the benefit of rolling over a payday advance.
Ohio Chamber of Commerce Backs Financial Choice, Jobs and Competition
August 25, 2008 | Ohio, customers, employees, positive media coverage | Comments (1)Ohio Chamber of Commerce Backs
Ohioans For Financial Freedom
To Keep Jobs and Consumer Choice
COLUMBUS, OH – The Board of Directors of the Ohio Chamber of Commerce has given its support to Ohioans For Financial Freedom saying imposing overbroad government regulations is not the way to revitalize Ohio’s economy.
“The Ohio Chamber champions free enterprise and economic competitiveness and we believe HB 545, as passed by the Ohio General Assembly, runs counter to our mission”, said Andrew E. Doehrel, president and CEO of the Ohio Chamber of Commerce. “This new law, if not reined in by Ohio voters, will drive an entire industry and 6,000 good-paying jobs out of our state.”
If HB 545 goes into effect it means the loss of nearly $300 million to Ohio’s economy including $172.6 million in annual employee payroll, benefits and payroll taxes, $76.8 million lost in rent revenue to landlords across the state, and $23 million lost in advertising vendors. In response to this legislation, most of the major payday lending companies have announced they will close stores in Ohio putting as many as 6,000 jobs with benefits in jeopardy.
“As we strive to turn around our economy we must allow the free market to meet consumer demands and facilitate the creation of much needed jobs”, said Doehrel.
With 1,600 stores in the state, consumer demand for short-term credit is clear. Payday advance fills a need not met by traditional financial institutions and is a convenient, less costly option for short-term, unsecured credit. Removing access to reasonably-regulated storefront payday lending will force consumers into more expensive, and possibly even less-desirable, alternatives.
Ohioans For Financial Freedom is working to repeal section (3) of HB 545 offering consumers more lending options.
Founded in 1893, the Ohio Chamber of Commerce is Ohio’s largest statewide business advocacy group. The Chamber works to promote and protect the interests of its members – large and small – while building a more favorable Ohio business climate.
LTE: Facts being lost on payday lending issue
August 25, 2008 | Lima News, positive media coverage | Comments (0)LTE published in today’s Lima News:
Facts being lost on payday lending issue
JOSEPH FLOHRE, Lima
The state of Ohio is trying to drop the hammer on an industry that has been successful and serves a lot of people. This statement alone makes it seem like a no-brainer. The state is wrong.
However, when you say the industry is payday lending, suddenly the shrieks of the newspaper editorials, activists and self-righteous politicians drown out common sense. Payday lending is easily the most demonized industry in our state, and it’s become so shrill and so detached from the facts that it would be laughable if so many people weren’t about to lose their jobs.
In truth, payday lending is used responsibly a vast majority of the time, and the interest charged is a modest $15 for a $100 loan. These businesses have expanded because they’re popular with customers, who from time to time have need of the service they provide. There’s nothing malicious about it, but when the governor and the Legislature are trying to look pious, even common sense becomes hard to come by.
Payday lending employs a lot of people, and it serves a lot of our friends and neighbors. Vote to scrap this ill-conceived bill.
