Don’t know what’s up with Kentucky
February 10, 2010 | Kentucky, industry | Comments (0)I used to think it was a freedom loving state.
Kentucky bill snagged?
February 9, 2010 | Kentucky, industry | Comments (0)From the story:
A measure that would cap interest rates on all short-term loans at 36 percent might never get a hearing in the Democratic-controlled House, despite the backing of Democratic Gov. Steve Beshear.
Banking and Insurance Committee Chairman Jeff Greer said he has not decided whether he will hear House Bill 381, a measure that has 19 co-sponsors and the support of more than 50 social service groups.
Greer, D-Brandenburg, said Monday that he would first like to hear more about a database that was approved in 2009 to track all payday loans in Kentucky. The database would be used to determine whether people were receiving more loans than the law allows.
It’s nice to wake up to some good news.
Don’t lecture Kentuckians
February 8, 2010 | Kentucky, industry | Comments (0)CFSA’s Board Chair D. Lynn DeVault has an oped in the Louisville Courier Journal:
The national Center for Responsible Lending (CRL) has been labeled a “Predatory Charity” by the Consumer Rights League because it is a front for financial institutions that compete with payday lenders but themselves prosecute low-income customers who can’t repay high-interest loans. CRL was founded with funding from Marion and Herb Sandler, pioneers of the use of adjustable rate mortgages which contributed to our nation’s financial collapse. The Sandlers made a $3 billion profit by selling their company to Wachovia shortly before the credit market crashed under the weight of their toxic home mortgages.
Kentuckians don’t need a lecture on financial reform from a coalition with a record like this.
Rate cap bill filed in Kentucky
February 5, 2010 | Kentucky, industry | Comments (0)Not sure it’s going anywhere. We’ll see.
They obscure the facts
January 31, 2010 | Kentucky, industry | Comments (0)Our critics never acknowledge the millions of people who are helped every year by payday loans. They always trot out the one dramatic story they can find of someone who probably shouldn’t have taken a payday loan in the first place.
Turning to pawn shops in Kentucky
January 21, 2010 | Kentucky | Comments (0)Maybe they could use some competition from payday lenders.
Mindless editorializing
January 17, 2010 | Kentucky, industry, regulation | Comments (0)A Kentucky paper added this to it legislative wish list for 2010:
Cap payday loans at 36 percent interest. The laws against usury date back to ancient times, but somehow the short-term lending industry got the legislature to roll back common decency a few years ago. Gov. Steve Beshear has promised to support an interest cap. So should the House and Senate.
Newspapers are always demanding truth and transparency from business. How about truth from a newspaper? A 36% rate cap is a ban.
Kentucky trouble?
December 15, 2009 | Kentucky, industry, regulation | Comments (0)This just popped up:
Kentucky Gov. Steve Beshear Tuesday called on members of the Kentucky General Assembly to consider legislation that would cap the amount of interest payday lenders can charge consumers to 36 percent.
The cap is based on the federal government’s annual percentage rate limit placed on payday loans to military members and their families.
Since we’re taking a lesson from the military rate cap, let’s note that payday lenders aren’t lending to military personnel because they can’t make money at 36%.
Kentucky trouble
December 9, 2009 | Kentucky, industry | Comments (0)The Louisville Courier News doesn’t get it. a 36% rate cap is a ban:
Pay lenders do provide a service to people hard up for cash in the short term, and lenders willing to extend credit to risky borrowers ought to be able to realize a fair profit for the risk.That said, a 36 percent interest rate cap, although high, is probably fair. But it’s also as high as it should go. That rate, after all, doesn’t seem to have bankrupted the payday lenders who specialize in lending to Kentucky’s military personnel.
That said, a 36 percent interest rate cap, although high, is probably fair. But it’s also as high as it should go. That rate, after all, doesn’t seem to have bankrupted the payday lenders who specialize in lending to Kentucky’s military personnel.
What are they talking about? Who makes 36% loans?
What’s up with Kentucky?
December 7, 2009 | Kentucky, industry | Comments (0)From the story:
Members of the Coalition for Responsible Lending said at a news conference Monday in Louisville that they want lawmakers in the 2010 legislative session to cap at 36 percent the annual interest on cash advance loans — the same rate Congress imposed in 2007 on payday loans for military personnel.
Apart from loans to military personnel, payday lenders in Kentucky may charge up to $15 per $100 dollars borrowed — or $75 for the maximum $500, two-week loan — which adds up to an annual interest rate of more than 400 percent, coalition members said Monday.
Does the Coalition for Responsible Lending know that a 36% rate cap is a ban? Why don’t they talk honestly about what their proposal means for consumers?
