With all due respect
June 5, 2009 | Indiana, industry | Comments (1)Public officials shouldn’t just take the word of so-called “consumer groups.” The Indiana Secretary of State has a guest oped in a local paper that clearly indicates that only one side of the issue has been whispering in his ear.
“Credit is vital to success”
April 21, 2009 | Center for Responsible Lending, Indiana, federal legislation, industry | Comments (0)From a guest piece in the Northwest Indiana Times:
Credit isn’t just for big loans and businesses, it’s also vital for families trying to make ends meet. When a family has an emergency expense like a car repair that exceeds their savings, getting a short-term payday loan can be the difference between driving to work or losing their job.
Exactly. Payday loans customers need the service to meet unexpected expenses. The elitists who want to ban the credit have never walked in the shoes of a payday loan customer.
Payday loans and the middle class
February 3, 2009 | Indiana, industry, media coverage, states | Comments (0)From the Indy Star:
More middle-class families are using payday loans “to put off the day of reckoning,” said Elizabeth Warren, a Harvard law professor who is chairwoman of a congressional watchdog panel on the $700 billion bailout for the U.S. financial system.
“Too many families live with no cushion, so when something goes wrong, they turn to payday lenders.”
Another way of putting it is that payday lenders are there for people when times are tough. Like right now.
Business not booming
December 26, 2008 | Indiana, customers, employees, industry, media coverage | Comments (0)At least for payday lenders in Fort Wayne, Indiana. From the story:
The survey shows that more payday owners are reporting a decline in business this year, with about three times as many reporting a decline in December as reported an increase in lending.
Bill Smith, who owns Easy Money stores, said customers who turn to payday lenders are like everyone else this year and are cutting back.
That means using available funds for holiday purchases and not borrowing.
“Our customers are trying to do a cash Christmas this year,” he said.
This contradicts a lot of supposition in the media that the payday lending business is booming.
Brilliant
December 23, 2008 | Indiana, alternatives, industry, media coverage, positive media coverage | Comments (0)This column explains in plain English both the needs of the borrower and the lender:
The financing types lumped in the “predatory lending” category include: pawn shops; payday advance and check-cashing operations; rent-to-own stores; buy here, pay here car lots; and tax-refund anticipation loans applied for in combination with tax preparation. Virtually all of these financing services are most heavily utilized by the poor, and all charge much higher rates and fees than it would cost for regular bank financing or paying cash for the product. In some cases, loans are further secured by a hold on a tax refund or property as collateral or the right of repossession.
The obvious problem these so-called advocates miss … What’s the alternative? Loans made when there is a high risk of default and no security? Should poor people not get loans? These are the only practical alternatives.
In a free-market, loans price themselves. Lenders price a loan to make a small profit and borrowers decide whether that is reasonable.
Don’t eliminate financial options
November 23, 2008 | Indiana, research, states | Comments (0)That’s the opinion of this guest writer in the Palladium (IN) Item:
The role of the entrepreneur in providing services demanded by the public is crucial to the economic advancement of all. Claims that this particular service is predatory ignore this function and discount the benefits obtained by those who borrow funds. As John L. Rabenold, an executive with Ohio-based Check ‘n Go, explained, “Our customers don’t think they’re making a bad financial decision.”
Brilliant.
Look around before choosing
July 13, 2008 | Indiana, Uncategorized, industry | Comments (0)…says Rae-Ann Miller, special advisor on consumer issues in the FDIC’s research division.
We couldn’t agree more. That’s why CFSA members post fees and APRs in posters in all store locations, so customers can know in clear and simple terms the cost of a loan.
Pawnbrokers, payday lenders booming?
June 8, 2008 | Indiana, Louisiana, industry | Comments (0)These two pieces discuss the perception that pawnbrokers and payday lenders do better during tough economic times. But some say the picture is not so clear. More business doesn’t necessarily lead to more profits as there are fewer buyers for pawn items and possibly more defaults on payday loans. We think a lot more numbers crunching and less stories using anectodal information is needed.
Here’s an article from Louisiana and another from Indiana.
