Wow! A student calls for personal responsibility
February 25, 2010 | alternatives, customers, industry | Comments (1)Says overdraft fees are “fair” and “purposeful.” From the column in the University of South Carolina’s The Daily Gamecock:
I was once the victim of an overdraft fee. My bank charged me $30 for dipping $13 too deep into my checking account. Was it annoying? Absolutely. Was it my fault? You bet. I signed a piece of paper promising to pay a penalty if I failed to stay within the limits of my account. I failed, and the bank made sure that I kept my promise. Fair enough.
WSJ raises strong opposition to CFPA
February 25, 2010 | federal legislation, industry | Comments (0)And makes a great point. From the editorial:
On Capitol Hill, the Obama plan to create a Consumer Financial Protection Agency has been failing on the merits. But rather than examine why so few people want a new bureaucracy deciding which financial services Americans can use, the left has chosen instead to blame Wall Street for blocking its creation. Just one problem: Wall Street doesn’t oppose it.
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Testifying recently before the Financial Crisis Inquiry Commission, Goldman Sachs CEO Lloyd Blankfein explained why his firm has nothing at stake here: “Because we are an institutional firm that largely focuses on corporations, governments and large public and private investing organizations, we do not have retail businesses.” He added that “we agree that a more specific focus on consumer protection, whether in the context of a new agency or otherwise, is warranted.”
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If Senate discussions now yield anything like the planned Obama consumer regulator, the result will be huge new costs for the economy and unknown risks for the taxpayer. Wall Street couldn’t care less, but Main Street will pay the bill for this experiment for many years to come.
Editorial support in Colorado!
February 25, 2010 | Colorado, industry, positive media coverage, regulation | Comments (0)“Regulations are tough enough” says the Daily Camera:
In these disastrous economic times, “regulation” and “oversight” have become popular battle cries. But payday lending is highly regulated industry, already — with caps and fee structures that are actually quite stringent when compared with other lenders. The rules on payday lending in Colorado are tough enough.
Driving legitimate businesses, and employers, out of business would also deprive hundreds of thousands of credit-challenged Coloradans emergency funding — to fix their cars, to keep their apartments, to pay an unexpected health bill — at precisely the wrong time.
Stick a fork in Kentucky bill?
February 24, 2010 | Kentucky, industry | Comments (0)According to the Louisville Courier Post you can:
Rep. Jeff Greer, D-Brandenburg, chairman of the House Banking and Insurance Committee, said Wednesday that he doesn’t plan to call House Bill 381 for a hearing this session because he wants to give a new electronic system meant to monitor the payday industry time to work.Greer, whose committee heard testimony about the system from the state Department of Financial Institutions on Wednesday, said in an interview that the state needs time to gather data it currently lacks.
Comment of the Day
February 24, 2010 | Uncategorized | Comments (1)I find a statement that the Stephanie Honan, the spokesperson for Fifth Third Bank made in the original Bloomberg article interesting. She states that Fifth Third Bank complies with all applicable State and Federal Banking Regulations. I own a payday lending store operating in Ohio and Fifth Third has become a competitor and they are charging 10% of the amount borrowed. The majority of the time we see their customers taking out $500 and they charge them $50. As a licensed payday lender operating under the existing law in Ohio I am only allowed to charge that customer about $28 to $30, depending on how many days they take the loan out for. How are they allowed to operate in our arena and not follow the same rules?
Diatribe disguised as argument
February 24, 2010 | Missouri, industry, regulation | Comments (0)In yesterday’s STLToday site:
Over the years, Missouri lawmakers have allowed payday lenders to run amok among some of the state’s most desperate and vulnerable citizens.
It’s newspaper editorial writers that run amok. With no business experience, practical wisdom or common sense, they spew bile and and anti-business invective to make themselves feel better.
Banks getting in PDL
February 24, 2010 | alternatives, industry | Comments (1)The Bloomberg story is getting more pickup.
We feel left out
February 24, 2010 | alternatives, federal legislation, industry | Comments (0)A New York Times blog said this today about the CFPA:
Similarly, the proposal for a consumer financial protection agency — which would regulate mortgages, credit cards, home equity and auto loans and even pawn shops and which was part of the House bill — also seemed to face a tough road ahead.
Actually, pawn shops aren’t in the bill, but we are.
Montana referendum coming?
February 24, 2010 | Montana, industry, regulation | Comments (0)We’ll have to keep an eye on this.
Phony study released in Kentucky
February 24, 2010 | Kentucky, industry | Comments (0)A local group puts together meaningless numbers and then makes stupid conclusions. They call it a “study.” From the story:
“More than four million loans were made in 2008 to Kentuckians who paid more than 400 percent in interest on those loans. So, we see a huge problem with payday lending in the state of Kentucky.”
How many Kentuckians were able to make a car payment or pay a utility because they had access to short-term credit? Oh, they didn’t study that.
