New legislation in the House would cap loans at $750, limit interest rates, and prohibit a borrower from having more than one outstanding loan at any time writes the Missouri Times.
Missouri is a great place to operate if you’re a lender. This law would cripple the industry. The bill stinks from this standpoint. The proposed max loan amount is $750 and limited to one loan per borrower. How does that encourage competition?
I’m against these databases. I would be fine, if they gathered anonymous information for the benefit of lenders and consumers. They’re just too “Big Brother” for my taste.
It’s insane that we baby these voting adults. It’s like, hey, you can not make a financial decision, but you can vote for the president of the United States. The inmates are taking over the asylum.
Comments
3 responses to “Missouri Contemplates Veritec…Big Brother”
Great points, Nick. What do you know about Veritec? Do they have their own lobbyist? Who owns this data base provider? What size budget do they have? Who are the founders? Who is behind this company? Obviously, their agenda is to implement data bases in all 50 states? Could the CFSA and the large, multi-unit, state licensed Lenders be funding/collaborating with Veritec?
Or, am I simply a conspiracy lunatic?
Jer
Jer, the problem is not Veritec it’s the states. Veritec is just the mechanism. I’m sure there is funny business that goes on to make this contract. The dirty little secret is that the state gets a piece of every transaction. It’s a money maker for them, which is just wrong.
Do the large trade groups work with Veritec? Hmmm. My opinion is that the large lenders want laws on books for payday loans. This way, they do not ban them altogether. Now, when they push these laws through, they’re looking out for themselves. I think this is just human nature.
When Veritec comes to a state, it hurts everyone, but it really kills the small fry b/c they’re the 2nd and 3rd lender. When they say just one loan per borrower, it kills the market.
Again, I’m against these databases, but 1 loan for up to $750 smells fishy. I would much rather prefer 3 loans up to $250/each. This lets the small lender stay in business.
I’m following you, Nick. The small guys are taking a beating. Additionally, CFSA, FISCA, and OLA each have their own agenda. As you know, CFSA and FISCA are funded by the big, multi-chain, state-licensed lenders. OLA has not been “embraced” by them.
Each national association is supported/funded by parties in opposition to one another. Throw in The Native American Financial Services Association (NAFSA) and you have a “war.” The state licensed operators are not fond of NAFSA, to put it mildly.
I still think, if you dig really deep, Veritec has many tentacles… :o)I’m certain ANY Lender would be happy to pay NY, GA, KY,PA, NJ, etc. a a dollar/loan to have the ability to open a licensed B & M in these states.
Jer