Layaway is back.  From the story: 

Today, credit cards are maxed out, and struggling retailers have resurrected layaway to get shoppers back in the aisles. Sears is once again offering layaway, and Kmart, where the service was never discontinued, is giving the idea a fresh push with a new national ad campaign.

In one TV ad, a woman is putting her back-to-school items in layaway and boasts to a friend that she likes “to plan ahead.”

From Walletpop:

I’ve been griping for some time now on WalletPop that free checking is hardly free. After all, the average household pays more than 12 overdraft charges a year. At, say, $35 a pop, that’s $420 a year — hardly a free checking account….

Banks have to make money somehow. We may not like that they have to make money, but they are a business, after all. {A bank expert} sees trouble ahead for the banks when the Federal Reserve gets around to addressing overdraft fees, and notes that banks are already adjusting to new rules, like making it harder for banks to raise credit card interest rates without warning, from the Credit Card Accountability Responsibility and Disclosure (CARD) act. Some of the CARD rules went into effect in August; the rest will start in February. “Some of these regulations are going to limit the banks’ ability to charge overdrafts,” says Israel, meaning that banks are already trying to think of new ways to make their profits.

The Consumer Rights Coalition has them.  Here’s the latest one:

With the current state of the economy, there is no way that a bank will loan money to me (or tens of thousands of other, hard working Americans) unless I have A++ credit. If it wasn’t for payday advances I would’ve been homeless, without food, without gas to get to work, and without electricity. These loans have saved me so many times and the government is trying to take that away from me? America’s working class is already in a tough spot and this law will make us even worse off. It is my right as a U.S. citizen to decide where I get my money from, not the government’s right. After all, this is the country that states, “The Land of the Free” in the national anthem right? Let me make my own decisions!

It’s starting to be phased in.  From the story:

Some of the more important features of the act are:

Credit card companies will be unable to increase rates that have been fixed for a year provided payments have been made within terms; however, this does not apply to interest rates that are based on an index, such as the prime lending rate, which most credit cards are.

They must give 45 days notice, instead of the prior 15, on changes to be made to the terms of the card.

They must send your bill so you receive it 21 days, instead of 14, before payment is due.

Transparency has always been the key to consumer protection.

From the story:

Webb has given loans recently on Rolex watches and multi-carat diamond rings. “We’re seeing some of the nicer things from people who don’t normally need loans,” he said.

Because of the nature of the business, pawn shops also have become retail shops, where savvy shoppers go to look for bargains on used merchandise. Selling the forfeited merchandise turns a profit for the pawn brokers.

The economy “has made people become smarter shoppers,” Webb said. “They’ll come in and buy it pre-owned to make their money go further. Everybody’s trying to stretch a dollar these days.”

Wisconsin Radio Network is picking up on the fact that the industry is oppopsing rate cap legislation.

From a letter in the Springfield News Leader from QC’s Tom Linafelt:  

Short-term payday loans each year help thousands of Missouri families overcome unexpected financial circumstances and avoid more-expensive fees associated with bounced checks and late bill payments. In addition to being more expensive, these options negatively impact credit ratings and may hurt a consumer’s access to employment, housing, insurance and other credit options.

And with credits cards and other alternatives being squeezed, this short-term credit option is needed more than ever.

Actually, from yesterday:

What happens when short-term credit options dry-up?

The consumer will still have a need and demand, which will force them into the world of unlicensed, unregulated lenders on the internet. The consumer will give up all control of thier bank account to a company that is in “god knows where” and pay approximately $30 per $100. Makes alot of sense…

On the flip side, Mr’s Hintz will be able to grandstand and say the “number” show that I have done this great thing and helped people our the the evil PDL trap, just look at these numbers from the WDFI. The number of loans have dropped by 90%!!!

Again, the truth is not that the consume has all of the sudden not needed the option, but instead forced to go “underground” to borrow!!! Seems just like Prohibition!!!

PDLindustryblog finds it.

If you’re not watching this History Channel show, you’re missing out.