A bill to lower interest rates for the jobless died in California. Now that unemployment benefits are deposited directly into bank accounts, these loans are not as risky to lenders.
Do we really need a bill for everything under the sun?
Author: admin
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Contact your state Senators through the Internet
http://tinyurl.com/votersvoice
On April 26th the Senate will vote to begin debate on the Consumer Financial Protection Agency bill. While well-meaning there are unintended consequences that will negatively impact consumer choice in the local financial market. After reading this note we ask you to do the following:
1. Follow the link at the bottom of the note and write your Senator.2. Repost this onto your social media sites so more voices may be heard.
The Consumer Financial Protection Agency will deny millions of United States citizens access to credit.
It will have the power to regulate and restrict personal credit options including loans from community banks, credit unions, local automobile dealerships, retail layaway plans like Wal-Mart, even from doctors and dentists who have a payment plan for medical or dental work.
There is no reason to create the CFPA, which will be a gigantic federal bureaucracy that will regulate local businesses that are already well regulated by the states or current laws.
The CFPA will wipe out thousands of jobs while doing little to reign-in the abuses of Wall Street.
With credit constricted, thousands of jobs on Main Street will be lost as local companies who offer credit services or depend on credit for business costs have to either close or lay-off employees.
The community bankers, small lenders, local businesses that issue credit had nothing to do with the financial meltdown. They provide small amounts of credit to America’s middle class. Theirs is no reason to put a federal agency between these businesses and their customers.
Unbelievably, this legislation would cripple financial choices on Main Street while providing Wall Street another bail out and costing taxpayers another $400 billion in taxes.
Customers deserve to make their own financial choices and don’t need the government making decisions for them.
Small local lenders didn’t take a dime of federal bailout money and were not responsible for the financial meltdown.
Write your Senator today!
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Illinois bill has until May 7th to pass
Senate bill 655 has until May 7th to pass. Illinois currently has two models for the cash advance industry. The first model is offering payday loans and has a state database. The other model is offering installment loans.
This bill will cap rates on loans greater than 121 days to 99%. Practically everyone, including the CFSA, are backing the new bill. Small and medium size cash lenders, specifically ISLA (Illinois Small Loan Association) are against it.
I’d love to hear both sides of the argument, CFSA and ISLA.
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MoneyTree gets cease and desist order in Washington
The Kitsap Sun reports that the state ordered Moneytree to stop allowing borrowers to use and then “rescind” small loans and stick to an eight-loan limit. Rescinding the loans allows a borrower to have a clean slate.
Moneytree has over 35 locations in the state of Washington. They also operate in California, Colorado, Idaho and Nevada.
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Wisconsin has a new payday law
The Wisconsin Senate passed a new bill in the 11th hour. Here are the details.
The new law would restrict where payday loan stores could locate and limit their loans to $1,500 or 35% of monthly income, whichever is less. Borrowers would be able to renew those loans just once. Auto title loans would be limited to half the value of a vehicle.
Title lenders would be required to notify borrowers before seizing their vehicles; could charge borrowers only “reasonable” storage fees if they repossessed their vehicles; and give borrowers cash back if they sold their vehicles for more than the amount of the loan.
The bill does not include a state database, like Veritec. This is a good thing.
Two things I’m curious about:
- Only one rollover is permitted, but can the borrower pay off in full and reborrow? I did not see a cool off period.
- Regarding title loans, how is the value of the car determined?
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Colorado bill passes House 33-31
This is an ugly bill. They’re effectively going for 36%.
Payday Pundit writes “…day ruiner.”
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Wisconsin has until Thursday to pass a bill
The Senate bill is a much better bill. The general assembly bill would ban title loans, limit lenders to $600 and ban rollovers.
If a bill does not pass by this Thursday, it can not become law this year. Read more in the Wisconsin AP News.
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Online payday lender chased out of Massachusetts
Attorney General, Martha Coakley, settled w/ New Mexico based Fast Bucks.
“The settlement prevents payday lender FastBucks from offering its high interest “payday” loans to Massachusetts consumers, and requires FastBucks to return all interest charges and fees that it assessed against Massachusetts consumers. The Attorney General’s Office has already identified $35,000 in fees and interest owed to consumers, and is continuing to work to identify borrowers entitled to restitution. FastBucks will also pay $10,000 to the Commonwealth.”
Massachusetts allows 23% plus $20 administrative fee upon the granting of a loan. This makes it tough to make money there.
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America’s dirty little secret
I know this is a little off topic, but I think it’s worth sharing. According to NPR:
“..nearly half (47%) of all Americans don’t have to pay any federal income tax.”
Why isn’t Obama trying to squeeze the 100M+ people for a few dollars? I think I know the answer. 100% of these people (that actually voted), voted for him. They will again b/c the asylum has been handed over to the inmates.
So the next time people bring up raising taxes on the $250 and up club, which is only about 2% of the population, throw this little fact in their face. According to factcheck.org:
“Those reporting adjusted gross income of more than $250,000 to the IRS are projected to make up 2 percent of households next year, when the new president will take office. Those folks will earn 24.1 percent of all income, and pay 43.6 percent of all personal federal income taxes, the Tax Policy Center figures.”
You don’t make poor people rich by making rich people poor.
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Wisconsin bill inches forward
Wisconsin has payday loan reform on it’s agenda. The Senate has two bills floating around.
“One bill, written by Sen. Jim Sullivan, D-Wauwatosa, would limit loans to $1,500 and restrict payday lenders from establishing themselves within 1,500 feet of another lender or within 150 feet of a residential area. The bill would also restrict borrowers from rolling over loans to a later pay period more than once.”
“Bill number two limits loans to $600, prohibits any rollover of loans and bans auto title loans.”
One of these bills has until April 22nd to get out of the house. I like our chances. Wisconsin currently has 548 payday loan licenses.