From an article today in the Concord Monitor:
A year ago, the state Legislature outlawed payday and title loans in order to protect consumers from paying exorbitant interest rates. But that hasn’t stopped some lenders from offering other types of short-term loans at equally high interest rates.
Today, the House will vote on a bill meant to close what some consider a loophole in the law. Opponents of the bill say it will remove the last resource for people desperate for short-term loans.
“I don’t think those people with bad credit should have no place to turn for a loan,” said state Rep. Jeff Goley, a Manchester Democrat and chairman of the House Labor Committee.
Senate Bill 193 would put a 36 percent cap on annual interest rates, including some fees, for any loan under $10,000. It would apply to both loans and lines of credit.
There’s a tremendous disconnect between elected officials and working Americans. It seems as if the officials are listening to a few anti-business advocacy groups and not their constituents.
MotleyFool advises on how to avoid bank fees.
The guy who helped bust ACORN is in trouble:
Alleging a plot to tamper with phones in Democratic Sen. Mary Landrieu’s office in the Hale Boggs Federal Building in downtown New Orleans, the FBI arrested four people Monday, including James O’Keefe, 25, a conservative filmmaker whose undercover videos at ACORN field offices severely damaged the advocacy group’s credibility.
When will people learn to quit while they’re ahead?
The populist bashing of Wall Street to get the CFPA passed continue. But payday lenders aren’t Wall Street, we’re main street.
From the FoxBusiness story:
But the initiative remains stuck in the Senate Banking Committee, where the top Republican, Sen. Richard Shelby, (R-AL), has been negotiating with Chairman Christopher Dodd, (D-CT), over a possible bipartisan compromise on legislation. Financial industry sources say one of the main sticking points is the CPFA—and a showdown is coming.
In an interview with FOX Business, Shelby said that while he hopes committee Republicans and Democrats can reach a deal on reform, “we don’t have to have a bill.”
He said he remains “vehemently opposed” to creating a CFPA and “we’ll soon find out” if Democrats are willing to compromises on it and other issues to proceed with legislation.
Shelby would not discuss details of the negotiations. But two financial industry sources said he recently gave Dodd a list of provisions that committee Republicans and Democrats could likely agree on—and provisions Republicans will not accept, including a CFPA.
Interesting article. We loved this opening line:
WHETHER rich or poor, the need for urgent cash is always there.
The Chamber of Commerce continues its praise worthy effort. Check their website.
It will be interesting to see if he mentions the Consumer Financial Protection Agency in tomorrow night’s address.
The days of free checking are numbered.
