“Fed rage”
November 23, 2009 | federal legislation, industry | Comments (0)It’s similar to “road rage” but applies only to a federal agency that is going to lose power to a proposed Consumer Financial Protection Agency.
Holiday season & payday lending
November 23, 2009 | customers, industry | Comments (0)Not sure we’re buying this story:
To ensure that their families aren’t disappointed, people tend to get creative.
For those who plan ahead, layaway programs at retailers such as Toys R Us, Kmart and Sears have been popular. The Sears at Triangle Town Center, for instance, has 400 orders in its layaway store room.
Greg McBride, senior financial analyst for financial Web site Bankrate.com, expects people to turn to payday lending and pawn shops as well.
Pawn shop borrowing during the holiday season makes sense. Payday loans makes sense to workers expecting a bonus or are only borrowing an amount that can be covered by their next paycheck.
Indian lending
November 22, 2009 | alternatives, industry | Comments (0)PDLindustryblog knows more about this than I do.
This paper still exists?
November 22, 2009 | Ohio, industry | Comments (0)I thought the Cleveland Plain Dealer was going out of business. An editorial today criticizes the legislature for “lethargy” in not placing more restriction on payday lending:
Practically speaking, lenders remain able to charge outrageous APRs because the General Assembly hasn’t closed loopholes by passing a pro-consumer bill introduced June 4 by Rep. Matt Lundy, an Elyria Democrat.
What voters intended was to uphold a 28 percent APR cap on “short-term lending.”
What payday lenders did in response to that vote was to put aside their “short-term lending” licenses and get themselves licensed under Ohio’s “small loan” and “mortgage loan” laws, and keep right on charging loan-shark rates.
Yes, payday lending evolved and now operates under other Ohio licenses. The legislature looked at the economy, the number of citizens employed in the payday lending industry, and number of people who need short-term loans and came to its senses. No lethargy involved. However, the Payday Pundit will lethargically blog over the next week as he takes some time to be with his family over the holidays.
Against the CFPA
November 20, 2009 | federal legislation, industry | Comments (1)The Washington Times has a strongly worded editorial today:
As if hyperactive Washington politicians haven’t already grabbed enough power by taking over banks and car companies and trying to control everybody’s health care, now they are getting closer to centralized bureaucratic control of the entire consumer credit market. Pending legislation to create a superpowerful Consumer Financial Protection Agency (CFPA) would take an ax to financial freedom and significantly increase consumer costs.
That’s not what most people would call “protection.”
The bill already has made it through the House Financial Services Committee, chaired by Rep. Barney Frank, Massachusetts Democrat. It is expected to reach the House floor shortly after Thanksgiving. However, because so much attention has been focused on health care, this threat to consumer freedom has evaded the greater public scrutiny it deserves.
Rep. Jeb Hensarling, Texas Republican, has led opposition to the bill. In a July 22 Op-Ed column in this newspaper, he wrote: “H.R. 3126 would create a new bureaucracy run by five unelected individuals appointed by the president. … This agency would possess sweeping powers to ban or modify any home mortgage, credit card, personal loan or other ‘consumer financial product’ it subjectively deems to be ‘unfair’ or ‘abusive.’ If the mortgage that would allow you to be a homeowner is deemed ‘unfair,’ you’d better find another one. If the credit card you choose for your family is ‘abusive,’ you might find yourself paying cash.”
Tribal lending
November 20, 2009 | alternatives, industry | Comments (1)Drawing fire again. From the story:
Awash in complaints about a tribally owned payday loan company, the Better Business Bureau has awarded an “F” rating to PDL Ventures LLC of Box Elder.
That’s one of the stiffest measures available to the agency, which lacks enforcement powers. The BBB has fielded 110 complaints since the Chippewa Cree Business Committee formed the venture last June, most of which are unresolved, states the agency’s report, issued Thursday.
Outlawing greed
November 20, 2009 | federal legislation, industry | Comments (0)I think Senator Dodd’s grasp will exceed his reach on this particular issue. From the story:
Senate Banking Committee Chairman Christopher Dodd said an overhaul of U.S. financial rules is needed to prevent “staggering greed” and close gaps that allowed risky lending and investment practices.
Draft legislation Dodd unveiled last week to end what he called an era of “profound irresponsibility” was faulted today by Republicans who said it would expand government, weaken bank oversight and lead to taxpayer bailouts. Dodd said outdated rules leave regulators unable to keep pace with the industry.
Finding a small bank or credit union
November 20, 2009 | Uncategorized | Comments (0)Walletpop has some good advice.
Geithner testimony
November 19, 2009 | federal legislation, industry | Comments (0)From his written testimony to the Join Economic Committee today:
Banks and non-banks operate in the same market and compete for the same customers. But they play with a different rulebook. Non-banks like mortgage brokers, consumer credit companies and payday lenders escape federal supervision almost entirely. The inconsistent regulatory regime sparked a race to the bottom in the mortgage lending market, and the consequences are tragic and well known.
What’s this “escape federal supervision” nonsense? Lots of industries aren’t “supervised” by the federal government. Is there a presumption that every industry not “supervised” by the federal government isn’t otherwise regulated?
Stop the CFPA
November 19, 2009 | federal legislation, industry | Comments (0)Have you checked out this website?
