Online loans marketed as “green”
December 28, 2009 | alternatives, industry, international | Comments (0)Very clever marking from an online lender in Great Britain:
24/7 Moneybox offer a faster, more convenient, and, very importantly, a much ‘greener’ way of covering short-term expenses. With every aspect of the application carried out securely online and loans paid directly into customers’ bank accounts, typically no paperwork is involved in the payday loan process.
This means that by choosing 24/7 Moneybox customers not only save time and money, they also help to protect the planet by reducing the amount of paper that is consumed.
But storefront lenders create more economic activity by renting storefront space, using vendors, etc. At least that’s would be the Payday Pundit’s spin.
Let’s see the math
December 16, 2009 | international | Comments (0)This story out of Scotland seems crazy. Why doesn’t the journalist show us the math?
New rules in Canada
December 15, 2009 | industry, international, regulation | Comments (0)From the Toronto Star:
The Ontario government has moved forward with sweeping changes sparked in part by a 2004 Star probe on how low-income earners get gouged when they borrow money for short periods of time.
As of Tuesday, the cap on the interest charged is $21 for each $100 borrowed – the second-lowest rate in Canada after Manitoba, which has a $17 maximum.
“Capping payday loan rates is another step we’re taking to protect consumers,” a government official said Monday, noting it’s the latest in a series of measures gradually implemented this year to regulate an industry that has been criticized for preying on the poor.
“It’s building on our efforts to protect consumers who need to use these types of loans, including requiring lenders and loan brokers to be licensed and transparent on their lending practices,” the insider said.
The province has also outlawed “rollover” loans to stop people from borrowing more money from a payday lender before they have paid off an earlier debt.
PDL booming in Britain
December 14, 2009 | industry, international | Comments (0)From the BBC:
The “success” story of payday loans is a tale of the credit crunch and the recession.
Whatever
November 4, 2009 | international | Comments (0)A Canadian newspaper is unhappy with the new B.C. regulations.
New rules in Canada
November 2, 2009 | industry, international | Comments (0)From the story:
Lenders, including phone and Internet lenders, are now prohibited from:
- Lending more than 50 per cent of a borrower’s take-home pay or requiring repayment before the borrower’s next payday.
- Charging more than 23 per cent of the amount borrowed in interest and fees.
- Requesting an assignment of wages, or collecting from a borrower’s employer.
- Using practices that unreasonably increase the borrower’s debt load, including rollovers that require borrowers to pay significant extra fees for extending the time to pay a loan.
- Operating unless licensed by Consumer Protection B.C.
What?
September 23, 2009 | industry, international | Comments (0)This British columnist is out of his mind.
Fine on overseas lender
September 23, 2009 | industry, international | Comments (0)Missed this from yesterday. A UK-based Internet company got a beat down from the FTC:
The growth of pawn shops
September 8, 2009 | alternatives, industry, international | Comments (0)Springing up in Singapore.
Shariah compliant payday loans
September 2, 2009 | Center for Responsible Lending, industry, international | Comments (0)Payday loans have reached the Arab world. From the article:
A new kind of credit is available to people burdened with loans or strapped for cash.
These lending mechanisms include features such as allowing cash-strapped people to borrow against up to 18 months worth of paychecks and introductory four-month waivers on payments, according to ad stickers that are affixed to many ATMs in Riyadh streets, Al-Eqtisadiah daily reported on Sunday. They also claim that the operations are in compliance with Shariah. These services are more prominent during Ramadan, when people need extra cash to make it through the month of hosting suhur gatherings and buying Eid goodies to celebrate the end of the fasting month.
We’re waiting for Center for Responsbile Lending to comment on these loans.
