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“They want to find a villain”

April 8, 2010 | customers, employees, industry | Comments (0)

An AP story on the current political situation in the states:

Consumers frustrated with the economy “look for a dog to kick” because they’re angry with the financial institutions they blame for the Great Recession, said Ted Saunders, chief executive of Dublin, Ohio-based Checksmart, a payday lender that operates in 11 states including Arizona.

 ”They want to find a villain,” Saunders said. And opponents “have done a good job of painting a big X on my back.”

Now they do these stories?

March 22, 2010 | Arizona, employees, industry | Comments (0)

This is just like Ohio.  Write about people losing their jobs after the fact.   From Maricopa.com:

Two failed legislative bills and a dead voter initiative later:  six Maricopa residents look at the possible loss of their jobs come July 1.

“From what I understand there are no additional measures to continue the payday loan industry in Arizona and come July 1 if they (payday lenders) cannot really survive off a 31 percent interest rate, a good majority will close their doors,” said Steve Wilson, spokesman for the Attorney General’s office.

In Maricopa that would result in the closing of Check into Cash, 21083 N. John Wayne Parkway, and Advance America, 21476 John Wayne Parkway, which, combined, account for about six jobs in the city. Employees at both locations were instructed not to speak to the media, but the disappointment would be obvious.

While we’re on the subject

November 9, 2009 | customers, employees, federal legislation, industry | Comments (0)

The subject of federal legislation, that is, one way to weigh in is through the  ConsumerRightsCoalition website.

“Much needed service”

September 22, 2009 | Wisconsin, customers, employees, industry | Comments (1)

Ted Saunders, CEO of Checksmart, has a letter today in the Canton (OH) Repository:

During last year’s General Assembly session, lawmakers urged payday loan providers to alter their services. Many lenders have done so and now offer loans under the Small Loan Act and the Mortgage Loan Act at lower rates.

A large number of financial institutions, including consumer finance companies, automobile financiers and some retail companies, have used them for lending programs for years. Rep. Matt Lundy’s bill would shut down companies that previously offered payday loans, even though they are serving a distinct need and operating legally and in full compliance with all state regulations. Consumers are best served when they have access to a variety of credit options. Customers tell us that they appreciate our service — and the flexibility it allows them to manage financial challenges.

When people run out of choices, they are forced to turn to more expensive alternatives, including the costs associated with bounced checks, missed credit card payments, utility reconnection fees or unregulated offshore Internet loans.

“No solution”

September 14, 2009 | Wisconsin, employees, industry | Comments (0)

The 36% rate cap proposal in Wisconsin that is.  Great letter in today’s Herald Times

Our customers know they have options and pick us when it’s hard to make ends meet. They may need money for emergencies that can’t wait until payday or their income just isn’t enough. A payday advance can be a sensible financial choice compared to the penalties and costs of bouncing a check or missing a credit card payment or other bills. These negatively affect your credit rating; a payday loan does not.

We don’t like your agenda

September 11, 2009 | Daily Press, Virginia, employees, industry | Comments (0)

Virginia’s Daily Press lists its legislative priorities: 

Outlaw predatory lending

If the General Assembly can’t do the right thing on payday and car-title lending — after several years and the backing of a broad coalition eager for reform — we should question whether legislators are up to their job.

The law needs to protect people who are in financial distress from lenders who prey on them. They lend small amounts at usurious, punishing interest rates — often well above 300 percent APR — and under crushing conditions, such as confiscating borrowers’ vehicles if they miss payments.

The right thing to do is obvious: Impose a 36 percent interest-rate cap on short-term loans, the same cap that federal authorities impose to protect members of the armed services.

Sure, it’s a terrific time to reduce credit and layoff workers.

Great sign

September 3, 2009 | employees, regulation | Comments (0)


August 11, 2009 | Arkansas, customers, employees, industry | Comments (1)

People are out work and consumers have had their financial choices limited.  So, obviously payday lending critics are celebrating.  From the story:

Opponents of payday lending celebrated what they say is the end of the high-interest loan business in Arkansas.Opponents gathered in front of a shuttered payday lending store Tuesday in southwest Little Rock to speak with reporters. They said First American Cash Advance, the last payday lender in the state, closed all its stores on July 31.

To Wisconsin readers

July 22, 2009 | Wisconsin, customers, employees, industry | Comments (0)

The Wisconsin Coalition for Consumer Choice is looking for members.

Wrong, but honest

June 28, 2009 | Wisconsin, employees, industry | Comments (0)

The Wausau Daily Herald wrote an editorial last week in favor of a 36% rate cap.   The paper revisits the issue today and admits that the rate cap is a ban.  Progress, I guess, of some sort:

….Rather than precipitating a trickle of store closures at the margins, what we would see would be a wave of closures beginning the day after the law took effect, she said.

For those of us who regard payday lending as predatory, this is more a feature than a bug. But it is worth being honest about what the bill’s impact would be.

The writers offer no solution to the problem of access to short-term credit.

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