Duh!
July 30, 2009 | California, alternatives, industry | Comments (0)The San Francisco media has discovered pawn shops. I guess even the wine and brie crowd needs cash.
Membership drive still on
July 30, 2009 | Uncategorized | Comments (1)If you’re concerned about the legislative and regulatory threats to the industry, join CFSA and do something about it.
How to improve customer relationships
July 30, 2009 | alternatives, international | Comments (0)According to one bank in Australia, the way is to end overdraft protection. Apparently, overdraft fees are a huge issue “down under”:
“Although banks have always charged fees for overdrawing your account, they have been struggling with the negative publicity every since the Reserve Bank revealed the banks reaped $1.2bn through penalty fees last year,” Canstar Cannex financial analyst Peter Arnold said.
The research group said more banks were expected to follow suit.
The decision by NAB to axe its overdrawn fee is part of its efforts to improve its relationships with customers.
It should also put the bank on a more even footing with credit unions and building societies, who are generally more forgiving when it comes to customers being accidentally overdrawn.
The Plastic Safety Net
July 30, 2009 | alternatives, industry | Comments (0)New report says people are relying on their credit cards to get through the recession.
Comment of the Day
July 30, 2009 | federal legislation, industry | Comments (0)Regarding our post yesterday that September will be an exciting month legislatively for the industry, a reader says:
Not the kind of excitement I like though.
It’s called “innovation”
July 30, 2009 | Virginia, alternatives, industry, regulation | Comments (0)But to anti-business zealots, when a business changes a service to comply with regulations, it’s a “loophole.” More nonsense out of Virginia:
Quick-cash lenders have found a loophole around Virginia’s new law cracking down on predatory lending. Last year, legislators limited payday loans (money borrowed against a person’s next pay check at an exceptionally high interest rate). As a result, the governor’s office says, the number of payday loans in Virginia decreased by about 84 percent. However, consumer advocates say, there’s no way to tell if that number includes transfers from payday loans to open-ended lines of credit.
Why not just let consumers choose between the two services, not to mention pawn lenders, title lenders and credit unions?
“Payday loans needed”
July 30, 2009 | Wisconsin, industry, regulation | Comments (0)Great guest column in the Wisconsin Herald Times Reporter:
Placing a 36-percent fee cap on the short-term loan industry will take away a worthy consumer choice, as lenders would no longer be able to provide financial services to consumers in tight monetary situations.
A study by Federal Reserve Bank of New York Research Officer Donald P. Morgan concludes that the elimination of payday loans results in increased credit problems for consumers. This is because consumers would have to choose between bouncing a check or overdraft protection, incurring late fees on routine bill payments, borrowing from friends or family or taking out a cash advance on a credit card. All of these products have a cost associated with them.
Regulated short-term loans help hard-working individuals meet unforeseen expenses and manage short-term financial difficulties. A short-term loan is sometimes the only financial option for a consumer, especially since banks and credit unions generally do not provide loans of less than $500.
Comment of the Day
July 29, 2009 | Uncategorized | Comments (0)Boy, this could go either way. Should they create a set of Federal Regulations that allow for the industry to survive, this could be a very good thing. We shall see…
Great money saving tips
July 29, 2009 | personal finance | Comments (0)Obviously not a lot of payday lending news today, but this is worth posting:
Caskets
The Rip-off: Upscale boxes, purchased by emotional families through funeral homes, can go for $20,000 — a mark-up of up to four times cost. “People end up paying giant premiums that they don’t have to,” says Joseph Conzevoy, owner of ABC Caskets Factory in Los Angeles.How To Avoid It: Plan ahead and buy direct. Make sure the funeral home doesn’t whack you with a penalty for going outside its supplier network. The savings can be huge: ABC Caskets’ Carved Mahogany model, which Conzevoy sells for $5,000, would fetch three times as much inside a funeral home showroom, he says. (While you’re at it, shop around for flowers, too.) — Christopher Steiner
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Ab-Slimming Gadgets
The Rip-Off: Thirty percent of American adults are obese. That’s one big pool of suckers looking for a way to remove inches with ease. Gadgets abound, costing $30 to $120. Some “ab belts” deliver an electric current that ostensibly shocks the wearer’s midsection into shape. (The implied message: kick back, drink beer and get ripped.) Never mind that there’s no proof these short cuts work. “That this stuff is a rip-off is pretty obvious,” says Laura Ries, an author and marketing consultant in Atlanta, Ga. “People want to believe, though.”How To Avoid It: Stop watching infomercials and eating too much. Better yet, craft a weekly workout regimen (including three sessions of cardio and two of strength training) that you can do on your own. — Christopher Steiner
Take action!
July 29, 2009 | federal legislation, industry | Comments (1)Let’s let this critic know how you feel. Leave a comment.
