What are you waiting for?
June 25, 2009 | federal legislation, industry | Comments (0)Sign the Consumer Rights Coaltion’s online petition to Congress.
Another one we missed
June 25, 2009 | Iowa, alternatives, industry | Comments (3)An alert reader saw this column about a payday loan “alternative” in the Cedar Rapids (Iowa) Gazette:
The bank loaned a total of $50,000 at 12 percent interest for terms of one to three years — compared with payday lenders’ two-week loans at an annual interest rate of 300 percent or greater.
As usual, no information about the term length, fees, or other restrictions. In any case, let the consumers decide.
Overreaching is a good word
June 25, 2009 | alternatives, federal legislation, industry | Comments (0)Event the community bankers don’t like the idea of a Consumer Financial Services Agency. From the story:
President Barack Obama’s proposed regulatory overhaul of the financial system has ruffled the feathers of local community banks.
They are concerned that a new consumer protection agency, among other elements of the plan, would prompt more government intrusion in the already heavily regulated banking business.
“In my mind, it’s an overreaching of what the government needs to do,” said Jeffrey Ball, president and CEO of Friendly Hills Bank in Whittier. “This would be unprecedented. You could have a regulatory body go in and state how a private company could structure a certain product.”
Sure, regulate everything
June 25, 2009 | Wall Street Journal, alternatives, federal legislation, industry | Comments (0)Now there’s a push to regulate pre-paid debit cards. From the Wall Street Journal:
Prepaid reloadable cards, payment cards that aren’t tethered to a traditional bank account, won’t get the same regulatory scrutiny under the recently enacted Credit Card Act of 2009.
Consumer advocates want to change that. They are urging the Federal Reserve to strengthen guidelines affecting prepaid cards from companies such as Wal-Mart Stores Inc., Green Dot Corp., NetSpend Corp. and H&R Block Inc. while the Obama administration’s focus remains concentrated on regulating the credit-card and banking industries.
No
June 25, 2009 | alternatives, industry | Comments (0)Check cashers cash checks. Payday lenders make loans. Even Kiplinger makes mistakes:
Historically, financial institutions have left the business of serving immigrants’ needs to others. Payday lenders have cashed checks, while Western Union and MoneyGram have been popular for those sending money back to their home countries. Coinstar, Green Dot and Wal-Mart have the reins on the prepaid debit card market.
Turning partisan
June 25, 2009 | Washington Post, federal legislation, industry | Comments (0)I’m talking about the proposal to create a Consumer Financial Services Protection Agency. From today’s Washington Post:
As Congress intensified its scrutiny of the Obama plan, Republican members of the House Financial Services Committee questioned the idea of splitting consumer protection from government oversight of the banking business’ health.
Republicans lined up with the banking industry on Wednesday in attacking a Democratic proposal for a new U.S. Consumer Financial Protection Agency at a congressional hearing focused on a key component of the Obama administration’s broad plan for financial regulation reform.
Well, if this become partisan, it’s easy to predict who will win. Dems control both houses of Congress in significant numbers.
Consequences of federal legislation
June 25, 2009 | federal legislation, positive media coverage, regulation | Comments (0)The must read of the day. CFSA’s Tommy Moore in the Tampa Bay Tribune:
But if Gutierrez and Durbin are successful, it won’t prevent people from needing emergency cash or requiring our services. It will only mean that Americans have one less option for short-term cash loans and that they will be forced to choose more expensive alternatives.
Update: Buffalo News ran the oped as well.
Called out
June 24, 2009 | Iowa, customers, employees, industry | Comments (2)A reader wants to know why the Payday Pundit didn’t post about this letter to the editor a Dubuque, Iowa paper. Because I missed it! Anyway, it’s a great letter from a local lender:
Our products help people in money emergencies avoid high, excessive bank overdraft fees, daily negative balance charges and utility reconnection/late fees. Those fees can have annual percentage rates often three times higher than a payday loan and cost much more.
Our fees are posted prominently in our stores and customers know the charges, nothing is hidden. Ninety-seven percent of our customers pay on time, are happy with our service and glad it exists. When a customer has difficulty paying us back, we work with them to establish a flexible payment plan. Why would we loan to someone who cannot pay the loan back? That would be very unprofitable.
Goes without saying
June 24, 2009 | Uncategorized | Comments (1)PDLindustryblog says “Lawrence Meyers is right.”
Weird language
June 24, 2009 | Daily Press, Virginia, alternatives, industry, regulation | Comments (0)“Prurient”? Read this strange letter to the editor yourself.
