Here’s what the West Virginia state’s attorney had to say about payday lending in the Times West Virginia:
“It’s a very very shadowy industry, and it operates very much off the grid. The only answer to payday lending is to ban it.”
Talk about taking the moral high ground.
Now, payday loans are illegal in West Virginia and lenders should respect that; but I don’t think the DA, acting as a voice of the state, is right. He should just stick to “It’s illegal in West Viriginia.”
The Internet companies being accused of either making or collecting Internet payday loans in West Virginia are Cash Advance Now, Debt Doctor, Direct ROI, E Smart Credit Network, Island Payday, Platinum Finance payday business, Sonic Cash, A.C.A. Recovery, Capital Collections, Covenant Management Group, Oasis Financial Solutions and Westbury Ventures.
The state has been successful in driving Internet lenders out. For example, Wisconsin just recently settled a class action law suit against and Internet lender. You can read the post here.
Comments
2 responses to “West Virginia is Insane”
Federal Reserve Bank of New York researchers concluded that the elimination of payday loans results in increased credit problems for consumers, such as more bounced checks, complaints about lenders and debt collectors and increased filings for Chapter 7 bankruptcy. This proves that the elimination of payday lending does not eliminate the need for short-term, low-dollar credit. would eliminate an affordable short-term credit choice for consumers.
Jeff, your approach is 100% correct. The only way to prove to people, like the District Attorney or West Virginia, is by using the facts. Taking away their options and ability to chose, only makes their lives more difficult.
The Consumer Rights groups never address the research that’s out there. They just try and associate payday lending with something that’s bad. We all know that anything can be bad or good used incorrectly.