Credit scores can fall when limits are cut
August 20, 2009 | alternatives, industry | Comments (0)USA Today reports on a new study that shows “credit card issuers slashed credit for an estimated 24 million borrowers who paid their bills on time, and a third of those consumers saw some drop in their credit scores during a six-month period.”
America, End Your Fear Of Wall Street
August 20, 2009 | federal legislation | Comments (0)New article in Mens News Daily looks at the federal response to the financial meltdown.
Common sense dictates implementation of a structural reconstruction. The proposed Consumer Financial Protection Agency would only be an ill-defined expansion of the government payroll, proliferating government reach into more corners of society when there are agencies already entrusted to protect consumers are not doing their jobs. Proposing the launch of such an inappropriate meddling amoeba is evidence of government ignorance of the realities on Wall Street.
CBS explains new credit card rules
August 20, 2009 | Uncategorized, alternatives, industry | Comments (0)CBS News financial adviser Ray Martin explained the changes on the “The Early Show” this morning.
Unemployment still on the rise
August 20, 2009 | Uncategorized | Comments (0)AP reports.
A reminder…to qualify for a payday loan a customer must have proof of steady income.
NYT on “Debit Card Trap”
August 20, 2009 | alternatives, industry | Comments (0)Today’s editorial.
Washington Post editorializes in SUPPORT of check cashers!!!
August 19, 2009 | Washington Post | Comments (0)The editorial , among other things, says that check cashers fill a “legitimate need”; that legislation to restrict check cashers “misses the point”; says that check cashers locate “where there is demand for their services” and concludes that “the proposed restrictions are draconian.”
Check-cashing stores cater to the “unbanked,” as well as any others who are willing to pay a fee for the ease and convenience they provide. Often open when banks are not, these stores fulfill a legitimate need for many workers in Prince George’s County who are unable to maintain a bank balance or who prefer quick access to cash. Check-cashing stores are already limited by state law in the fees they can charge, and a state office licenses and regulates them.
Yet in the campaign to make Prince George’s gorgeous, such establishments are an easy target. A perception that they make neighborhoods undesirable, drive away other businesses and contribute to crime has resulted in a positive community response to the council proposal. But the proposed restrictions are draconian. They limit the hours of business for check cashers, require them to provide security guards and bulletproof glass, and prevent them from sharing space with other businesses. This last clause is especially problematic, as check-cashers currently share space with everything from grocery stores to Wal-Marts. True, people leaving with cash are easy targets for crime. But the same could be said of ATMs or even traditional banks. What sets check-cashing stores apart from these businesses is their image. Such establishments are not associated with “nice” neighborhoods. But restricting them would inconvenience only those who use them, and it would do little to make neighborhoods nicer.
Do we dare say it? WELL SAID!!
Wall Street Journal reports on new credit card rules
August 19, 2009 | alternatives, federal legislation, industry | Comments (0)WSJ: What to Expect As New Rules on Credit Cards Take Effect
The bulk of the legislation’s key provisions will take effect in February 2010, including limits on interest-rate increases on existing balances. The following July will see the introduction of new disclosure rules, drafted and approved by the Federal Reserve Board and other banking regulators.
In anticipation of the legislation, major card issuers have been raising interest rates and fees, reducing credit lines and closing accounts.
Internet lending in Mass
August 19, 2009 | Massachusetts, industry | Comments (0)Boston Herald reports that state regulators are cracking down on internet lenders. Just want to remind everyone that members of CFSA are required to follow the laws of the state of the borrower, per Best Practices.
Sheboygan Press Op-Ed: Payday lenders do a needed service
August 19, 2009 | Wisconsin, industry, regulation | Comments (0)Kenneth King writes,
Payday lenders should not be legislated out of business as they provide a niche in the financial marketplace. I have been an advocate for the “unbanked” and “under-served” population for several years. When I approached the credit unions and other financial institutions about serving these groups, their response has always been, “We can’t make any money with that market” and the risk is too great for the return.
New survey of credit card fees
August 18, 2009 | alternatives | Comments (0)A new survey details the late and over limit fees charged by 39 different credit cards. The average late fee was found to be $28.19.
