Author: admin

  • Nevada trying to cut down on Internet payday loans

    George Burns, Commissioner of the Financial Institutions Division, wants Nevada to stop Nevada licensees from giving loans to borrowers in other states.

    He doesn’t have a problem if you are licensed in that “other” state.

    Mr. Burns may have a legitimate beef, but it’s probably misdirected. His department has to deal with these complaints. He would rather a Missouri borrower deal with the Missouri Regulation body.

    The main issue I have here is that you inevitably start discriminating against lenders who are trying to play by the rules. The lenders that are giving the state of Nevada problems will find some other way to do so, directly or indirectly.

  • Banks offering payday loans in Ohio

    I’m a little shocked to learn that after the state of Ohio tries to put payday lenders out of business, they allow banks to offer payday loans above the 28% legal limit.

    Why didn’t this information come out before the election?

    You don’t fill a credit gap by putting an entire industry out of business.

  • Were the Ohio and Arizona payday campaigns too deceptive?

    The question posed in this article: “Why do political consultants so often choose a deceptive argument when an honest one would do just as well?”

    Of course, hindsight is always 20/20, but there is something to be said about fanning the flames. You can’t say the campaign failed from a lack of effort. The PDL industry should be commended for their diligence, but they were beaten easily in both states.

    I’ve always felt that if the industry just told the public that the majority of the people that use the product do NOT want to see it go. I would love to get out of paying my electric, gas or telephone bill; but it doesn’t mean I don’t want electricity.

    One instance that I think was sketchy was the commercial starring the older, farmer with the red pick up bitching about the government. I concede that there is a personal freedom argument here, but getting all libertarian on the general public just doesn’t work that well.

    I’ve always felt the power of the industry lies in the numbers. By presenting the shear number of loans, you can make a argument that it’s a very desirable product. The numbers do not lie.

    One could also make the argument that it doesn’t trap people into a cycle of debt because borrwers are fully aware of how the product works.

    Once you try to hard to sell something, as they did in Ohio and Arizon, it can confuse the general public. I think “choice” was a big part of the campaign and that’s a good thing.

    Again, I don’t mean to sound like the Monday morning quarterback or placing blame.

  • EZCorp keeps rolling

    Despite closing 154 stores prior to Hurrican Ike, EZCorp grey profits 44% to $16,031,000 for the quarter ending September 30, 2008. Included in the results for the quarter is the impact of a previously under utilized foreign tax credit for $3.1M.

    “In addition to completing these two acquisitions, we plan to open 30 to 35 EZMONEY locations in the U.S. and 30 to 35 Empeno Facil locations in Mexico. In Canada we will continue to monitor the regulatory process in each province and enter provinces that adopt acceptable payday loan regulations.”

    From the sounds of it, these locations will focus more on Pawn and selling merchandise.

  • Arkasas still trying to keep payday lenders out

    Payday lenders were hoping that a Supreme Court ruling in Arkansas would allow them to operate under a check cashing law from 1999. Well, the Supreme Court didn’t see things that way. They voted 6-0 against.

    “Because that fee is in reality an amount owed to the lender in return for the use of borrowed money, we must conclude that the fees authorized clearly constitute interest,” Justice Paul Danielson wrote.

    You can see the full story here.

  • Payday lenders lose in Ohio and Arizona

    The people have spoken. I’m not surprised that something as polarized as payday lending could make it through the popular vote. Let’s face it, payday lending has a image problem. This group is constantly being attacked by consumer groups.

    The majority of people drew a line a payday lending. In Ohio, many lenders are closing down. Cash Land is closing 1/3 of their stores (appr. 40 stores). Cash America is closing down 43 locations.

    Cash America said Wednesday the remaining Ohio locations will begin offering services beyond payday loans such as short-term unsecured loans governed by a different statute. Some locations also will purchase gold and operate as pawn shops.

    Arizona also suffered a blow when their initiative was voted down. Arizona’s payday lenders are not shutting their doors just yet. They still have unitl July 1, 2010 to pursuade legislators to do something.

    Is this trend?

  • Payday loan firm move is rejected

    This article in the STLToday.com is worth mentioning. It’s basically not letting a Check ‘n Go relocate to a new location.

    What’s remarkable is that people are discriminating against some business. I just don’t understand how this comment makes it into the article. I guess anyone can pass judgement these days:

    “It doesn’t belong in a strip mall,” Leech said. “It’s not an appropriate
    image for a retail development in Arnold.”

    City officials declined the conditional user permit that would have allowed the relocation.

  • Payday loans taking off in United Kingdom

    Dollar Financial Corp. (nasdaq: DLLR) opened five more stores in London bringing the companies total to 250 stores in the United Kingdom. The United Kingdom makes up 25% of the companies revenue.

    Find th Forbes article here.

  • The true origins of the word “usury”

    Usury was originally a biblical term. This makes it a very powerful word for many people. The Jews coined the word usury and it meant lending money at any rate of interest to another Jew was condemned, but you could lend money to outsiders.

    This term being associated the bible is influencing people that are “on the fence” so to speak about payday lending. People need to stop interpretting the Bible incorrectly b/c it’s very powerful.

    Here is the full article by Marc Kilmer titled ‘Usury’ misused in lending debate . Marc Kilmer is a policy analyst with the Buckeye Institute for Public Policy Solutions, a research and educational institute located in Columbus.

  • Payday lenders helped by Ohio Christian Alliance

    The Ohio Christian Alliance is urging voters to vote “no” on Nov. 4th and allow payday lending to continue in Ohio.

    What people who oppose payday lending won’t tell you is that if the rates get capped at 28%, no one will be getting a cash advance. Banks will use overdraft fees to replace payday loans. The Ohio Christian Alliance probably realizes that having an option is better than having zero options.

    Read the full aritcle here.