Read more details in the Payday Pundit.
Author: admin
-
“Look Who’s Peaking at Your Paycheck”
This is worth sharing. Credit scores, which have been long a key factor in whether you get a loan or a credit card, may not be sufficient for many future credit decisions.
The Credit Card Act will require credit-card companies to consider an applicant’s income or assets and current debts before approving credit.
What does this mean for borrowers? Probably less credit. You can read the full article in the Wall Street Journal titled “Look Who’s Peaking at Your Paycheck.”
-
Payday loans growing fast in the UK
An article about QuickQuid, a subsidiary of Cash America, in a British magazine. The article is titled “Texan tycoon behind the company charging hard-up Britons 2,300% interest.” I can’t help but chuckle at the article title.
Apparently, demand for Internet payday loans is growing fast. It’s the same racket that sensationalized the APR. What’s new?
The articles worth reading, if you’re on online lender.
-
North Carolina talking payday loans
Payday loans have been missing from North Carolina since 2007. There is currently a bill, in the works, trying to reestablish payday loans in N.C.
In an article titled “NAACP Takes Stance“, the national organization is at odds w/ the local (North Carolina) association. The national organization does not support regulation, while the local NAACP leaders, President Melvin “Skip” Alston and V.P. Fred Yates, are in favor of legislation that is allegedly pro payday lender.
North Carolina would be a huge victory for the industry.
-
PDL Industry has a new look
Don’t leave. You’re in the right place. PDL Industry got a new domain and look.
-
Missouri rumbling about 36%
State Rep. Mary Still, a Democratic, is trying to get payday loan legislation going again. She’s calling for 36%.
Is there anything more annoying than the comparison between payday loan stores and McDonalds fast food restaurants. Who cares if there are more loan stores, anyway. So if McDonald’s opened 1,000 new locations, it’s all of a sudden ok to have 1300 payday loan stores in the state? It’s just annoying.
-
What’s going on in Virginia?
The state of Virginia is now offering short term loans to it’s 100,000 state employees at 25% annualized interest. There are other requirements and they’re limited to two of these a year. Timothy Caine, the governor of Virginia, is pretty proud of this fund.
That’s fine, but this article is bunch of self serving, pork for the governor, by the governor. I did like this comment by Robert Diedrich and I think it’s worth sharing:
It is disingenuous and misleading to suggest that payday loans carry a “400% annual interest rate” when the average payday loan is repaid within 30 days for an interest rate between 10-20%. Here is another fine example of a politician talking a populist game by villainizing those who would put their capital at risk to provide a vital service; credit for those who can’t get it anywhere else. I have no problem with sensible regulation of this lending market, but the Governor should at the very least recognize the service being provided, the risk to the capital providers, and stop demonizing an industry that generates tax revenue and performs a legitimate service to society. Socializing the credit risk of these borrowers is not the answer. By definition, “payday” loans are made to people with jobs, and they have to be greater than 18 years of age: responsible adults engaging in legitimate commerce on clearly identified terms. Stop trying to fix problems that don’t exist, with other peoples money.
Payday Pundit also makes a pretty good point about Virginia’s government loan program.
-
2009 better than expected for payday lenders
Lynn DeVault, board chair of the Community Financial Services Association of America, says, “In the end, things have been relatively positive.”
Currently, the CFSA is tracking about 178 bills in the states. It opposes 101 of those.
The states that will likely have a lot of attention in 2010 are: Arizona, Wisconsin, Colorado and Ohio.
You can read more details at Cheklist Magazine Online.
-
Credit card rate caps
I left a comment for Curtis Arnold in his article titled, “Why Capping Credit Card Rates at 16% is Bad for Consumers“.
I’ll make my point first. Everyone in the financial industry should acknowledge the reality that no one knows the 100% best way. We can agree that the market will give us a better indication of what can and can not be done, rather than some politician.
He makes this hypocritical comment:
“Why not focus on payday lending, pawn loans, title loans or tax rebate anticipation loans? Some payday loans charge annual rates as high as 400%. That’s right, four hundred percent! Makes a 30% credit card look like a saint, huh?”
Here’s the comment I left:
“Curtis, you contradict yourself. You do not want rate caps on credit cards, but you do want the government to go after payday and pawn lenders.
Lending money is lending money. They have the same basic principles. The good customers pay for the bad customers.
I agree w/ the point you make about capping fees, but if you think credit cards are the lesser of two evils; compare the amount of credit card debt to other types of unsecured lending. Credit Cards probably are the biggest contributing factor in bankruptcies.
Besides, many people who do not qualify for credit cards, use payday loans. If you’re for more credit available to more people, then you should not take a shot at these loan products.”
-
Securing your network or computers on a shoe string budget
Tom Deligiannis is an expert in computer security and serves small business. He currently administers multiple networks and shares his knowledge of free or close to free tools that can help protect your business computers.
Check out his blog post titled, “Securing your network and computers on a shoe string budget.“
I, personally, use many of these tools. I’m not a big fan of “free stuff” b/c it’s usually with strings attached, but I can attest to these products. I’ve been computer and virus free for over 3 years.