Philathropy Action weighs in on Herb and Marion Sandler, Center for Responsible Lending founders
December 29, 2008 | Center for Responsible Lending, industry critics | Comments (0)
From the article:
The Center for Responsible Lending is an interesting place to hover for a minute. The organization markets itself as a resource for “predatory lending opponents”, and it is taking on such practices as sub-prime lending, pay-day lending, overdraft loans and refund anticipation loans, among other things.
In the Times Magazine piece about the Sandler’s philanthropic activity, they said:
“It starts with outrage,” said Herb. “You go a little crazy when power takes advantage of those without power. It could be political corruption — ”
“Or subprime lending,” Marion interrupted.
“The story of subprime is worse than anyone has written so far,” Herb said, shaking his head in dismay.
“It is,” Marion said, nodding in agreement.
So where’s the outrage, Mr. and Mrs. Sandler, at the way in which your own Pick-a-Pay invention has allowed thousands of people to acquire more debt than they could reasonably pay off? It doesn’t matter that they started out with good credit. Allowing a person with a solid credit rating and a $130,000 annual household income buy a home he cannot afford is just as irresponsible and exploitative as allowing someone with bad credit and $30,000 a year in income buy a home he can’t afford.
“Once Trusted Mortgage Pioneers, Now Pariahs”
December 29, 2008 | Center for Responsible Lending | Comments (0)…reads the headline of a New York Times article on Herbert Sandler, the founder of the Center for Responsible Lending.
The Sandlers’ giving intersected most directly with their business interests in 2002 when they helped create an advocacy group for low-income borrowers called the Center for Responsible Lending.
The center was the successor to a smaller organization in North Carolina, whose director, Martin Eakes, had helped the elderly and minorities avoid predatory banking practices.
“I said, ‘Isn’t that incredible what he is doing?’ ” Mr. Sandler recalled. “I said to Martin, ‘What would it take to do what you do on a national scale?’ ”
Businesses relying on credit cards
December 29, 2008 | alternatives, industry | Comments (0)The credit crunch has forced businesses such as restaurants to reach for their credit cards. From the article:
As bank lending tightens and the economy worsens, 54 percent of small businesses have some type of business loan and are using credit cards as one of their primary sources of leveraging those loans, according to the 2008 Small and Mid-Sized Business Survey from the National Small Business Association.
Additionally, 44 percent of small businesses have used a credit card in the past year to help finance their capital needs. That figure was only 16 percent in 1993.
Speaking of financial literacy
December 29, 2008 | South Carolina, industry | Comments (0)The editorial writers at the Beaufort (S.C.) Gazette could use some. They wrote an editorial attacking the industry that is devoid of a single mention of cost comparisons, need, or context.
Spare me
December 29, 2008 | Arizona, alternatives, industry, media coverage | Comments (0)This letter writer to the Arizona Republic can’t debate the issue thoughtfully so wastes the newspaper’s space attack a legislator who is supportive of the payday lending industry.
NYT catches up to the Payday Pundit
December 29, 2008 | alternatives, industry | Comments (0)The New York Times has finally reported on the fact that pawnshops are booming. We’ve been talking about this for four months.
Americans & financial literacy
December 29, 2008 | Chicago Tribune, alternatives, customers, industry, personal finance | Comments (0)Not a pretty picture according to the Chicago Tribune:
According to a financial literacy survey by the Center for Economic and Entrepreneurial Literacy, which advocates personal finance education, just a quarter of adults knew that overdrawing their checking account, or bouncing a check, for a quick $100 was more expensive than a payday loan, credit card advance or emergency wire transfer. More than half said they thought a payday loan would be pricier.
Understanding the cost of a mortgage was another challenge. Only a third knew that a home buyer could expect to pay $350,000 in interest for a $300,000 house over the course of a 30-year mortgage with a 6 percent yearly interest rate.
The Payday Pundit bets that a survey of payday loan customers would show that they know payday loans are less costly than bounced check fees and overdraft protection.
No news is bad news
December 28, 2008 | Uncategorized | Comments (0)Especially for a blogger. There aren’t many payday lending stories to comment on, no legislatures are in session and Congress is out. That leaves the Payday Pundit with little to mine for posts.
We will blog lightly through the New Year, but expect to come back strong in January. Next year will be busy in terms of legislative action and the Payday Pundit will be on top of it.
Maybe we’ll ask a fortune teller
December 27, 2008 | Tennessee, industry, media coverage, states | Comments (0)About the the fate of payday lenders in Memphis and Shelby County.
Don’t isolate yourself to save money
December 26, 2008 | Uncategorized | Comments (0)This blogger at WalletPop is concerned that too many people will save money by staying home and isolating themselves from society. He has some solutions.
