The media drumbeat
June 14, 2010 | Virginia, industry | Comments (0)Fredricksburg.com keeps up an unrelenting crusade:
Some Virginians know, but many don’t, that car-title, payday, and open-ended lenders charge interest rates of 300 percent APR to 400 percent APR on loans.
By any definition, this is usury. But usury is legal in Virginia under laws passed and reaffirmed every year by the General Assembly.
Payday, car-title, and open-ended lending are reverse Ponzi schemes.
The Virginia legislature examined these services carefully. They acted. But nothing is ever good enough for agenda-driven journalists.
Financial reform: forging ahead
June 14, 2010 | federal legislation, industry | Comments (0)From the story:
Senators and House representatives are continuing to work this week on combining two versions of the financial reform bill ahead of a July 4 deadline for President Obama. Banks are working to protect their interests as the final bill will represent monumental change to financial regulation.
We’ve heard this before
June 14, 2010 | Arizona, alternatives, industry | Comments (1)These are the “alternatives” recommended to people after payday lending ends in Arizona:
• Consult family and friends — Ask loved ones if they are willing and able to help out in a tough situation with a short-term loan. Always put these types of loans in writing, specify the time period in which the loan will be repaid and offer to pay interest. This will help ensure trust and reliability.
• Apply for Credit Union Loans — Most credit unions offer short-term loans like Personal Assistance Loans or Quick Loans. These are typically unsecured, fixed-rate loans up to $500. Interest rates vary from 12 to 20 percent.
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• Seek Social Service or Government Assistance — Check out Govbenfits.gov. It offers information on more than 1,000 benefit and assistance programs. Visitors can complete a free, confidential questionnaire to find out which local benefits they are eligible to receive. Consumers in need can also find free assistance at food banks, churches and charitable social service organizations.
*Sell Personal Items of Value — Consumers can sell items of value to a pawn shop or host a yard sale. Personal items can also be sold online through eBay or craigslist. When selling online, be sure to thoroughly review security guidelines.
So why not let payday loans compete with these options?
I’m stunned
June 12, 2010 | Center for Responsible Lending, industry | Comments (0)Someone did a story on the lobbying activities of the Center for Responsible Lending. From the story:
The Center for Responsible Lending spent $130,000 lobbying the federal government in the first quarter as it continued to press for stricter regulation of credit card fees and on other consumer issues, according to a disclosure report.
The Durham, N.C.-based advocacy group, which advocates tighter regulation of mortgage lenders, also lobbied Congress and federal agencies on creation of a new consumer financial protection agency as well as overdraft loans and payday loans.
In addition to the House and Senate, the group also had lobbying contacts with the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp., according to a disclosure form filed April 20 with the Senate’s public records office.
The $130,000 the group spent in the January-March period is below the $180,000 spent in the first quarter of 2009 and the $175,000 expended in the fourth quarter of last year.
A no vote
June 11, 2010 | federal legislation, industry | Comments (0)From the story:
A key member of the House-Senate conference committee working on a compromise version of sweeping financial reform legislation said he hopes to improve the bill but is unlikely to vote for it.
“I want to make the bill better, even if I can’t support it,” said Sen. Bob Corker (R-Tenn.), a banking committee member who spent many hours negotiating with Democratic committee chairman Chris Dodd of Connecticut before the bill went to the Senate floor.”
Summing up yesterday
June 11, 2010 | federal legislation, industry | Comments (0)Here’s a boring New York Times story summing up the opening remarks of conferees.
Man
June 10, 2010 | Uncategorized | Comments (0)That was boring. Opening statements usually are. Here’s the schedule for Tuesday:
June 10, Washington, DC – Today, Chairman Dodd and Chairman Frank announced the House-Senate Conference will meet on Tuesday, June 15, in Room 2128 Rayburn at 11:00 a.m. to consider the following titles:
· Title 3 of base text: OTS/OCC merger; thrift charter
· Title 5 of base text: Insurance
· Title 4 of base text: Private Funds
· Title 9, subtitle C of base text: credit rating agencies
Update
June 10, 2010 | federal legislation, industry | Comments (0)Haven’t heard a mention yet of payday lending during the opening statements.
Shelby: “Rocky start”
June 10, 2010 | federal legislation, industry | Comments (0)Just popped on Politico:
Shelby and his Republican colleagues criticized Democrats for releasing a revised version of the base bill only hours before the conference committee was set to meet. They said the last-minute changes belied Democratic pledges to make the committee’s work fully transparent.
“It appears that we are off to a rocky start because the base text before the conference was negotiated and compiled behind closed doors and without any Republican participation,” Shelby said. “Granted, our respective Chairmen have scheduled a number of public meetings, but I suspect there have been a number of private meetings where legislative language has been coordinated and drafted without any public access or Republican input.
“It appears, at this point, that the only facet of this conference that will be public is when the Republicans get our one and only chance to amend what has already been decided by our Democrat colleagues behind closed doors,” Shelby said.
What about the CFPB
June 10, 2010 | federal legislation, industry | Comments (0)Probably one of the major things to finalize. Not mentioned in this story about issues discussed by staff and in the conference bill:
A copy of what’s called the “base bill’ version of the “Restoring American Financial Stability Act of 2010’’ was released Thursday.
The six-and-a-half dozen conferees will work from this version, adding amendments as need, desire and votes permit, before the compromise bill is voted on by the full Senate and House.
