The IAFFC is defending the industry
January 28, 2010 | Iowa, industry | Comments (0)And protecting consumer choice. If you do business in Iowa, check them out here. Below are some facts about the industry and Iowa:
- The industry contributed over $125 million to Iowa’s gross state product (GSP) in 2007.
- The payday lending industry supports over 2,000 jobs[] in Iowa, including 1,028 people directly employed in 315 storefront locations. []
- The industry indirectly created another 347 jobs in supplier industries.
- Payday loan store and supplier industry employees induced the creation of 701 jobs through the purchase of goods and services using earned wages.
- In Iowa, the total labor income impact from the payday loan industry is $78.5 million:
- Through direct employment, payday loan stores contributed nearly $40 million in labor income.
- Suppliers to the payday lending industry contributed $13.7 million in labor income as an indirect result of the revenues generated by the payday loan industry.
- $25 million was generated from the wages of payday loan store employees and supplier industries’ employees as they were spent in Iowa’s economy.
- The payday lending industry helped to generate $32.5 million in federal, state and local taxes in 2007.
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Note: Findings based on 2007 data from IHS Global Insight study.
“CFPA would limit credit”
January 28, 2010 | federal legislation, industry | Comments (0)Interesting piece authored by U.S. Chamber of Commerce President Tom Donohue up at Istockanalyst:
The Consumer Financial Protection Agency, which passed the House late last year, would create a massive new federal agency that could further limit the availability of credit and impose new economic costs on our nation.
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Consumers and lawmakers would be wise to follow the physician’s rule when deciding how to “fix” consumer protection laws _ first, do no harm. The CFPA, if enacted, would bring economic harm to consumers and to our economy without ensuring new protections or solving legitimate shortcomings in our financial system.
Isn’t that nice?
January 28, 2010 | alternatives, industry | Comments (0)Banks receiving federal money have found a way around executive compensation limits. From the story:
Other giant banks, including Goldman Sachs Group Inc. and Royal Bank of Scotland Group PLC, let certain employees borrow money to relieve personal cash crunches.
I’m guessing these aren’t $300 loans.
Fort Worth & pawn shops
January 28, 2010 | Texas, alternatives, industry | Comments (0)Some leaders there are trying to ease restrictions:
The Fort Worth City Council is considering a proposal that would ease restrictions on pawn shops in the city, but one councilwoman says Cowtown doesn’t need more pawn shops.
As it stands now, pawn shops and payday lenders that go out of business for two years or more cannot reopen in the same location. But a proposal would do away with the two-year rule for pawnshops.
Now that’s a smart city council.
Micro loans, Iowa & Arizona
January 28, 2010 | Arizona, Iowa | Comments (1)What do they have in common? They are all discussed over at PDLindustrynews.com
We agree with Elizabeth Warren
January 28, 2010 | federal legislation, industry | Comments (0)She’s against “deceptive practices” and so are we.
President’s State of the Union address
January 28, 2010 | federal legislation, industry | Comments (0)Did NOT specifically mention the Consumer Financial Protection Agency. Here’s what he did say:
We need to make sure consumers and middle-class families have the information they need to make financial decisions. We can’t allow financial institutions, including those that take your deposits, to take risks that threaten the whole economy.
The House has already passed financial reform with many of these changes. And the lobbyists are already trying to kill it. Well, we cannot let them win this fight. And if the bill that ends up on my desk does not meet the test of real reform, I will send it back.
APR, wrong way to judge PDLs
January 27, 2010 | industry, international | Comments (0)We normally don’t comment on company news releases, but we thought this one out of Britain makes good points about the payday lending service:
Although they are often manipulated by lenders to look more attractive than they actually are, APR can be a good measurement for comparing long-term loans or for comparing loans of a similar type, but they are not suitable for comparing short-term loans such as payday loans.
Ohad Hessel, Marketing Manager at PaydayBank says that while the APR on a typical payday loan can look very expensive at first glance, this yearly calculation is the wrong way to compare them to other types of loan.
” APR is the wrong way to judge payday loans because they are short term loans for relatively small amounts of money, designed to be repaid quickly. “
3,000 feet is the answer
January 27, 2010 | South Carolina, local issues | Comments (0)That’s the distance payday lenders need to be from each other in Columbia, S.C. to ensure peace, prosperity, democracy and the perpetuation of the human race. These city councils kill me!
Utah action
January 27, 2010 | Utah, industry, regulation | Comments (0)We missed this from yesterday:
A bill to further regulate the payday-loan industry cleared the House on Tuesday in a 65-8 vote.
HB15, sponsored by Rep. Jim Dunnigan, R-Taylorsville, would limit to 10 the number of weeks a two-week loan could roll over. The current cap is 12.
That ceiling is important, Dunnigan said, because it would stop further interest and fees from accruing — and borrowers could then begin to pay down the balance.
The measure, supported by the payday-loan industry and advanced to the House without a committee hearing, also would bar lenders from calling a borrower’s workplace to collect — if the employer has asked that they refrain from that practice.
A legislature that wants to works help consumers without destroying jobs and business.
