Comment of the Day IV
April 29, 2009 | Uncategorized | Comments (1)I can appreciate the letter and agree with it, but the payday industry is under fire. Rep. Guitierrez is sticking his neck out. We should work with him.
If the feds put through a law that will ensure the survival of the product, it’s a good thing. Fighting a battle on all fronts in every state is not an easy task.
Btw, would passage of this law make payday lending legal in all 50 states?
Let’s clear this up. The Gutierrez bill creates a ceiling, not a floor. So, as the letter says, it lowers rates in 23 states, but it doesn’t allow the industry into the 16 states that currently have rate caps or other laws that make payday lending unprofitable.
Comment of the Day III
April 29, 2009 | Uncategorized | Comments (0)On the issue of Indian tribes partnering with companies to engage in Internet lending:
Many of these Nations were relegated to reservations in rugged areas where making a living is difficult at best. Considering how Natives continue to be treated by the Government, how the rest of the US ignores the third world living conditions on reservations, and has forgotten us, I say GOOD for these lending Nations. People walk into this with their eyes wide open knowing what they are getting and what the cost is…….a much better deal than WE got!
Comment of the Day II
April 29, 2009 | Uncategorized | Comments (0)In response to the “Meanwhile in Canada…” post below:
…and the Canadian Payday Loan Association web site is very informative and updated frequently!
And here is the link to it.
So what?
April 29, 2009 | federal legislation, industry | Comments (0)Another story about someone taking campaign contributions from the payday lending. Are you bored, yet?
An Open Letter to Congressman Gutierrez
April 29, 2009 | federal legislation | Comments (1)This ad ran in Roll Call today…
Comment of the Day
April 29, 2009 | Uncategorized | Comments (0)Price Caps = Same Demand, No Supply
Meanwhile, in Canada…
April 29, 2009 | international | Comments (1)RTO has the scoop on the latest payday lending news our of Canada.
Credit card losses mount
April 29, 2009 | alternatives, industry | Comments (0)Missed this from yesterday:
Fitch’s Charge-Off Index, which tracks the write-down of uncollectable debt by credit card firms, climbed 101 basis points to a record 8.41 percent, eclipsing the prior mark of 7.52 percent reached in November 2005 during the bankruptcy spike.
The charge-off rate has increased 28.01 percent in the past six months and is up 46.77 percent year-over-year. The rate is being amplified by declining asset pools, as issuers continue to tighten underwriting at a time when overall consumer spending is slowing.
“As consumers struggle between surging unemployment and steeper declines in home and equity market values, they have been cutting spending and a larger percentage have fallen behind on their credit card bills,” said Fitch.
Pass the antidepressants.
A dangerous man
April 29, 2009 | Virginia, Washington Post, industry, regulation | Comments (0)Terry McAuliffe, Clintonite running for governor of Virginia, is still ranting and raving about payday loans. Guess he will keep this up until November.
Payday loan bill cuts choices for poor
April 29, 2009 | Center for Responsible Lending, Wall Street Journal, federal legislation, industry | Comments (0)Great letter in today’s Wall Street Journal:
Michael Calhoun, the head of the Center for Responsible Lending, asserts (Letters, April 18) that payday loans should be capped at 36% APR and endorses H.R. 1214, The Payday Loan Reform Act of 2009, for imposing limits.
At that rate, a loan of $200 for one month would generate $6 in interest. If Mr. Calhoun and the bill’s sponsors really think one can run a payday business by charging such a rate, they should set up shop. It is not hard to do. Clients will flock to their outlets instead of the “predatory” lenders they criticize.
The payday loan market is highly competitive and provides a needed service primarily for low-income people. Just let those folks try getting an instant loan from Citibank for $200 for one month. If H.R. 1214 is enacted, it will be back to thugs serving the low-income borrower market. That’s a “reform”?
Prof. Roger Meiners
University of Texas-Arlington
Arlington, Texas
Take that, Calhoun.
