The crusade against payday lending is becoming eerily reminiscent of the Salem witch hunts.

Soon they’ll be saying that the Payday Pundit is the Devil!

New coalition dedicated to protecting the rights of consumers.

 

Read the full release

On Thursday, U.S. Representative Luis V. Gutierrez (D-IL), Chairman of the Subcommittee on Financial Institutions, will hold a hearing to discuss much-debated legislation that would restrict unscrupulous payday lending practices.

The Payday Loan Reform Act (H.R. 1214) outlines solid consumer protections for 23 states that have weak or even nonexistent consumer protections from abusive lenders. The bill focuses on the two major concerns with regard to payday loans:  the fees charged and the “cycle of debt” that occurs when consumers are not able to immediately repay their loans.

Details on Thursday’s hearing:

 

Subcommittee on Financial Institutions and Consumer Credit Hearing

 

 H.R. 1214, the Payday Loan Reform Act of 2009

 

Thursday, April 2, 2009, 2:30 p.m., 2128 Rayburn House Office Building

FI and Consumer Credit

 

Watch the Live Webcast

You can find out here if you’re getting any.

From the story:

Renita Jablonski: The Senate Banking Committee today will consider a set of consumer credit protections. The economic crisis is putting new momentum behind regulations that lenders aren’t too happy about. Marketplace’s John Dimsdale has more.

---

John Dimsdale: The Senate bill would prohibit universal default. That’s when trouble with one credit card ends up raising the rates on all the cards in your wallet.

Linda Sherry is with Consumer Action:

Linda Sherry: And we think its terribly unfair the fact that the card in question, on which you may not even have been late once and have been paying as agreed, can raise your rate because of that.

But credit card issuers say the Senate’s restrictions will hinder their ability to charge borrowers for the risk that they may not pay back their loan.

Yes, the Payday Pundit points out the high cost of bank fees.  However, there will be unintended consequences to passing a law on credit card rates so the Congress should just let the market work.

That’s just not right.  I beg readers, don’t buy someone’s Gibson guitar at a pawnshop.  Let it stay there until the owner can reclaim it.   There’s no better guitar for playing the blues so the owner will definitely need it back.

The New York Attorney General has teeth.

Obviously, we’re just making that up.   But we’re about as accurate as a new Center for Responsible Lending poll about interest rate caps.  These people have no shame.