How come every place a traditional payday lenders offers an alternative service, the media calls it a “loophole?“ Just asking.
Categorized | alternatives, Daily Press, industry, Virginia
6 Responses to “Not a loophole”
Trackbacks/Pingbacks
Leave a Reply
- Round of applause
- Let’s try not to make generalizations
- Quote of the day (from Tuesday’s Senate Banking Committee Hearing)
- Dear banks, make your disclosures more clear, Date says
- Cordray nomination passes Senate Banking Committee
- President Obama blasts BofA’s $5 debit card fee
- CFPB says ‘We’re listening’
- Update on Cordray
- And on that same topic, your Quote of the Day
- Do restrictions work, or are consumers going to unregulated entitites?
-
Payday Pundit: Thank you for asking! Please feel free to use our ...
-
-
Jer Ayles-Ayler: We can only hope a journalist at Today will attemp...
-
Phil: I think check n go is thriving in this fierce comp...
-
Donya Jadlowiec: Hello could I use some of the material found in th...
alternatives Arizona Arkansas ban bank fees bans best practices bounced check fees Center for Consumer Freedom Center for Responsible Lending Cleveland Plain Dealer Colorado Columbus Columbus Dispatch consumer choice credit cards customers D. Lynn DeVault employees FDIC financial choice HB 545 Herb Sandler Issue 5 job loss local issues Missouri New Hampshire North Carolina Ohio Oregon overdraft protection payday loan alternatives rally rate cap rate caps research South Carolina South Carolina payday lending state regulation The State Virginia WalletPop Wall Street Journal washington state payday lending
-
Stay up to date
- Subscribe to the RSS feed
- Subscribe to the feed via email
© 2011 Payday Pundit. Powered by CFSA.
The PDLs need to accept part of the blame. Alternative products seem to only pop up after the industry loses a battle in the state legistature (OR, OH, VA, TX/CSO, etc). If the industry was serious about alternative products, they should consider offering those products before they lose their enabling legislation.
Its a loophole because we were smart enough to figure out the alternatives that they constantly talked about. If we weren’t able to find the alternatives they would still call them alternative loan products. They always find a way to make people that they don’t like look bad. Like when we build centers in the inner city, they complain that we are preditory because we are preying on the poor. How much sense does it make to build in mansion row? You build where the demand is! You don’t see a fishing bait shop in the middle of the desert do you?
“T.”, I am not going to attack your opinion, because at least you tried to apply some logic to it. I will tell you that maybe the other financial institutions need to take ALOT of the blame in this. First they offer over draft “protection” to “protect” the customers by charging them $37.50 for a $.05 overdraft, and then instead of contacting the customer to notify them, they let it go and continue to “protect” them over and over again. Then they wont offer and actual help like a small line of credit for those with less than perfect credit. Believe it or not 60% of my customers come in because they messed up on their accounts and now need some money to cover the “protection” fees that the backs took apon themselves to apply to their account.
Quote the Critic, never more!!!!
Instead of deflecting the attention to ODP, which I realize is a knee-jerk reaction for PDLs (for good reason at times), consider my point. It will always look like a loophole when the alternative is never discussed publicly until faced with expulsion. The reality is that the industry is reactionary. Its not necessarily a criticism – simply a public relations reality.
BUT the politicials MADE us find alternatives. These are the alternatives that they told us were out there, we found them and all of a sudden they are called loopholes. They told us for over a year that ” there are alternative loan products that you can offer that will keep you in business.” and when we found them they became loopholes. Remember that the only reason to have a business is to earn money, and to be honest, there isnt as much money to be made as you think, after all the over head and bad debt. Definantly we are going to be reactionary, we arent going to come out with products that make us less money, especially when the customers that are complaining are the ones that abuse the system and go to multiple locations.
Quote the Critic, never more
A loop hole exists when people try and circumvent the intent of the law. Do we really know the intent of the legislature? I don’t think they do half the time. They pass laws to keep their constituents happy. We end of with some watered down junk.
As a business your main priority is to stay in business. When the legislature directly (or indirectly) destroys a product that people want, offering an alternative product is a good idea.