Prospera CU Is Rolling Out National Payday Lending Program
November 24, 2008 | alternatives, industry | Comments (0)The Credit Union Times article quotes Prospera’s CEO, Ken Eiden, “We believe firmly that every credit union that has a payday loan store in their community should begin to offer GoodMoney or some other payday loan alternative.”
While the Payday Pundit agrees that having more choices is a good thing for consumers, we do think all lenders should have to follow the same rules. GoodMoney charges a fee of $9.90 per $100 for their payday loan (252% APR). How can GoodMoney be legal in Oregon and Ohio and other states that have instituted double-digit rate caps on payday loans?
Well…by law, federally chartered credit unions cannot charge more than 18 percent APR. BUT, unlike payday lenders, credit unions do not have to include fees in their APR calculation.
Americans adjust to frugal living
November 24, 2008 | alternatives, industry | Comments (0)Article detailing what some people are doing in these tight economic times.
They’re cutting back on travel for the holidays (63 percent), eating out at restaurants (81 percent), entertainment such as going to movies (72 percent), and household services such as housekeeping or lawn service (37 percent).
But the easy savings are over, and Americans are digging deeper. They’re selling old gold jewelry and ransacking closets to find “stuff” to put up for sale on eBay. More are using grocery coupons and buying holiday gifts on layaway.
Vote puts squeeze on payday loans in Ohio
November 24, 2008 | Ohio | Comments (0)From the AP story:
Jason Arnold, an RBC Capital Markets research analyst, said the recent aggressive stances taken by Ohio and other states against payday lending have made it tougher for the industry.
“I’m not even sure the companies themselves know how successful these alternative programs will be,” said Arnold. “If it’s profitable to operate under these other pieces of legislation, they will do it. If not, I imagine a lot of them – especially the smaller operations – will just close up shop.”
Michael Evans, 61, of Cincinnati, hopes that won’t happen. Evans, who voted against the rate cap, said payday loans have helped him through some tough times.
“These loans have let me keep some money in my pocket between paychecks when I’m running low,” Evans said. “I would be hurting if they close.”
Comment of the Day
November 23, 2008 | Uncategorized | Comments (0)In response to a post called “Our Limey friends have an opinion, too.”:
Don’t you think it would be better to use a different word than a demeaning phrase as “limey”. Why don’t you try using British or English? Or does this website prefer using inappropriate words and look like a bunch of uneducated fools.
First, this is a blog. It’s supposed to be snarky hence we periodically use “inappropriate” words. Second, I did call them “friends.”
Don’t eliminate financial options
November 23, 2008 | Indiana, research, states | Comments (0)That’s the opinion of this guest writer in the Palladium (IN) Item:
The role of the entrepreneur in providing services demanded by the public is crucial to the economic advancement of all. Claims that this particular service is predatory ignore this function and discount the benefits obtained by those who borrow funds. As John L. Rabenold, an executive with Ohio-based Check ‘n Go, explained, “Our customers don’t think they’re making a bad financial decision.”
Brilliant.
That’s why closing storefronts is bad
November 22, 2008 | Nevada, industry, regulation, states | Comments (1)Nevada officials are concerned about unregulated Internet lending:
The proposed rule wouldn’t prohibit payday lenders with licenses in other states from making loans where they have licenses, but it would eliminate the problem of payday lenders in Nevada violating laws in other states, Burns said.
Burns said he often gets complaints from his counterparts in other states but can only suggest officials from the other state take action against payday lenders who violate their laws.
“Doing business in cyberspace means no rules apply,” Burns said.
The solution: Bar Nevada payday lenders from making any loans over the Internet.
And how about keeping storefronts viable and profitable?
The future of payday lending in Arizona?
November 21, 2008 | Arizona, industry, states | Comments (1)The chief lobbyist for the industry says only the legislature can save it. From the story:
Lee Miller is chief lobbyist for Community Financial Services Association which supported prop 200 to extend the life of payday loan operations. He says banks have a monopoly on lending.
“Banks are unenthusiastic about making loans, and the loans they do make they charge rbitant fees and interest rates for,” says Miller.
Only the Arizona Legislature can save payday lenders. Miller says he does not expect lawmakers to void the voters’ decision on prop 200, but the industry will regroup to find a legal and profitable business model.
Who predicted this could happen?
November 21, 2008 | Ohio, industry | Comments (1)More Ohio payday store closings.
Comment of the Day
November 21, 2008 | Uncategorized | Comments (0)Responding to our post about a customer saying he will miss payday loans in Ohio because he needs them, a reader writes:
me too- in the worst way- I have been surviving with these loans while I am transitioning my lifeswork- I could have lost my children if were not for these loans because we would have had to move from our home temporarily. That would have been distrastrous.
Burying the real news
November 21, 2008 | Iowa, alternatives, industry, media coverage, states | Comments (0)So QCI {an Interfaith charity} called on banks and credit unions to show people there’s a more affordable way {than a payday loan} to get extra money. No banks answered the call…
