Wisconsin bill introduced today
May 28, 2009 | Wisconsin, alternatives, industry, regulation | Comments (1)From the story:
The act is supported by a variety of organizations, including AARP Wisconsin, Wisconsin Credit Union League, Wisconsin Women’s Business Initiative Corporation, Wisconsin Catholic Conference, Madison-Area Urban Ministry, Wisconsin SAVE$, Community Action Coalition for South Central WI, Inc., La Casa de Esperanza, Inc., and local elected officials, according to an email from the legislation’s supporters.
“Fifteen states and the District of Columbia either prohibit payday lending completely or have established two-digit limits on interest rates,” wrote State Rep. Gordon Hintz in an email about the legislation. “Wisconsin is currently the only state in the country where there is no rate cap for licensed lenders.”
It is a 36% rate cap bill that affects all lending. That means legislators will be getting a lot of heat from banks as well.
Credit scores falling
May 27, 2009 | USA Today, Uncategorized, alternatives, industry, regulation | Comments (1)From USA Today (a paper that is covering the credit crisis better than any in the country):
From the third quarter of 2008 to the first quarter of 2009 — the latest data available — the average TransUnion credit score dropped 6 points to 651, the credit bureau says. Scores fell more dramatically in states hardest hit by the housing bust: California saw a 10-point drop, for example, and Arizona, 11.
“Consumers are feeling the bite of the current recession,” says Ezra Becker, a director in TransUnion’s financial services group. “With delinquencies showing up in credit files, it’s not surprising that the average score is decreasing somewhat.”
So what are the implications for the payday lending industry? Will more consumers be turning to payday loans or will defaults increase, or both?
Credit crunch hits small business hard
May 27, 2009 | alternatives, industry | Comments (0)It’s amazing how the media portrays credit as necessary and good for every person and institution except working people, who are portrayed as incapable of making smart credit decisions. From the story:
Lending to small businesses had slowed even before last fall’s financial meltdown, and the credit picture has probably worsened since then, according to a report from the Small Business Administration’s Office of Advocacy.
The report issued Tuesday said the growth of small-business loans – those less than $1 million – had fallen to 4 percent as of June 2008, or half the rate that prevailed during 2007.
We love small business, but how about a story about the credit crunch hurting working people?
Just a reminder
May 27, 2009 | alternatives, customers, industry | Comments (0)Get involved with the ConsumerRightsCoalition or SaveMyPawnShop.com.
Debit cards are the future?
May 27, 2009 | Washington Post, alternatives, industry, personal finance, regulation | Comments (0)I thought they were the present. Ezra Klein, who normally blogs and writes about politics and policy, has discovered debit cards. From his Washington Post column:
Credit, with all its benefits and dangers, and convenience. But with debit cards, you can now have the convenience of plastic without the temptations of credit. I, for instance, use a debit card exclusively. And so do many others.
Well, aren’t you special.
Those last two sentences epitomize elitism. He and his friends have enough money in the bank to whip out their debit card where ever they go. Many Americans don’t, Ezra.
Confusion in Nevada, breath holding in Illinois
May 27, 2009 | Uncategorized | Comments (1)Scary stuff over at PDLindustryblog.
We’re not taking any satisfaction from this
May 27, 2009 | alternatives, industry | Comments (0)A New York Times business reporter is a victim of the housing crisis. That and some other interesting stuff over at Walletpop.
More scrutiny of financial products
May 27, 2009 | USA Today, alternatives, federal legislation, industry | Comments (0)USA Today has an editorial today that’s frankly kind of vague:
The real problem for consumers is not the lack of laws to protect them. In many cases, they exist. The deeper failure is the lack of any federal agency looking out for consumers’ interest across a wide array of financial products, from credit cards to “payday loans” to mortgages. Oversight is splintered across an array of agencies that tend to treat consumer protection as a stepchild.
They want more oversight or something. But the American Bankers Association says “enforce existing laws.”
I know, we promised
May 27, 2009 | South Carolina, industry | Comments (0)No more posts about South Carolina. Okay, after this one, or maybe the next one. The bill is going to the governor.
Comment of the Day II
May 26, 2009 | Uncategorized | Comments (1)Another reader didn’t like the Good Morning America hack job:
Noticeably the APR of Bank Overdrafts, Utility Reconnection Fees, ATM Fees and Credit Card Late Payment Fees were left out. I guess they are okay. It is perfectly fine for Banks, Utility Companies and the like to hit people with fees but we as payday lenders are bad guys and gals? Media sensationalization of course, in this piece from “Good Morning America.” The show should be renamed. “Good Morning America, Time to See How Well we Can Pull The Wool Over Your Eyes.”
