The pro-CFPA campaign won’t die
February 11, 2010 | Washington Post, federal legislation, industry | Comments (2)With a proposed overhaul of financial regulations facing stiff headwinds in the Senate, consumer advocates have redoubled their efforts to portray opponents as favoring big banks over the interests of ordinary Americans.
The latest offensive centers on the most divisive piece of the pending legislation: the proposal for a new agency to protect consumers of mortgages, credit cards and other such products from abuses by lenders. The Consumer Financial Protection Agency is a key element of the Obama administration’s blueprint for financial reform and was included in a House bill that passed in December with support only from Democrats.
Bad ideas never seem to die.
Compromise in Ohio?
February 2, 2010 | Cleveland Plain Dealer, Ohio, industry, regulation | Comments (0)This comes from the Cleveland Plain Dealer so consider the source before you get excited.
This makes sense
January 11, 2010 | Wall Street Journal, federal legislation, industry | Comments (0)President of the Federal Reserve Bank of Atlanta says this in today’s Wall Street Journal:
Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, said that it was likely that an oversight group would be formed to better identify how links in the financial markets can fuel a crisis.
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Mr. Lockhart said he remains against the idea of creating a new consumer-protection agency. He also said that he expected to see steps on aiding Fannie Mae and Freddie Mac in the coming months.
Charging more for high-risk borrowers
January 2, 2010 | Wall Street Journal, best practices, federal legislation, industry | Comments (0)The Wall Street Journal weighs in on the costs–and politics–of a high interest credit card.
Virginian Pilot hates the free market
December 25, 2009 | Virginia, Virginian Pilot, industry, regulation | Comments (0)This blistering editorial attacking the state legislature for not cracking down on title lending and payday lending could have made the point that we need to have competition between the two services. That’s what would best serve the consumers.
Not a loophole
December 14, 2009 | Daily Press, Virginia, alternatives, industry | Comments (5)How come every place a traditional payday lenders offers an alternative service, the media calls it a “loophole?“ Just asking.
Latest on the CFPA
December 11, 2009 | Wall Street Journal, federal legislation, industry | Comments (1)From today’s Wall Street Journal:
House Democrats agreed to allow a vote on a proposal to replace a consumer-protection agency with a council of existing federal regulators.
The proposal, being offered by Rep. Walt Minnick (D., Idaho) as an amendment to sprawling financial-overhaul legislation being debated in the lower chamber, would effectively block the creation of a watchdog that advocates, including the Obama White House, contend is essential for reining in financial-industry abuses.
Meanwhile, a deal struck between House Democratic leaders and business-friendly members of their caucus late Wednesday would scale back language allowing states to issue tougher consumer protections than the proposed consumer agency. he financial industry was fiercely opposed to the bill’s original language, which they said would make it costly for national banks to operate.
Minorities shun banks
December 2, 2009 | USA Today, alternatives, federal legislation, industry | Comments (0)USA Today discusses a new FDIC report:
More than one in four American households, including more than half of black households, use check cashers, payday lenders or pawnbrokers rather than a bank, according to a Federal Deposit Insurance Corporation report to be released today.Nearly 30 million households have no bank account or have one but also use alternate financial services at least occasionally, according to the FDIC report. The survey, the FDIC’s first in-depth study of the issue, was conducted by the Census Bureau.
The problem is most acute among minorities: 53% of African-American households and 43% of Hispanic households use check cashers or similar services instead of or in addition to banks.
Buying money orders and cashing checks are the most frequent transactions, the survey shows. Those using check cashers and other services say they are faster, cheaper and more convenient than banks — even though they pay a fee to cash a check they could deposit in a bank account for free.
The FDIC wants banks to win back those customers, saying consumers should have the benefit of insured savings and be able to build a credit history.
The Payday Pundit thinks everyone should be banked as well. But tell that to the banks.
Tough times, tough measures
November 30, 2009 | South Carolina, Times Gazette, industry | Comments (0)A major payday lending company is changing its business model in South Carolina. From the story:
An economy suffering from a deep recession and new payday lending regulations set to take effect next year has prompted the Cleveland, Tenn.-based company to turn in the payday loan business licenses for 12 stores, the company said last week.
In exchange, those stores will apply for supervised lending licenses, which would allow Check Into Cash to make longer-term consumer loans, based on a different underwriting criteria, and for unlimited amounts of money.
Speaking of elites
November 19, 2009 | Daily Press, Virginia, industry | Comments (0)The Center for Responsible Lending has a letter-to-the-editor today in Virginia’s Daily Press. Same old blather:
At a time when dollars are so dear — especially to average working people — every member of the Virginia legislature must take a stronger stand against predatory lending than was expressed last year. In these dire financial times, broadly calling for change is simply not enough. Virginia’s families are waiting for its leaders to bring needed changes to their daily lives. The question for the Virginia legislature is, “Who among our elected state officials will support this much-needed reform?”
Typical deception. When the writer says “reform” she means “ban.”
