This audio clip is very straight forward. There are a few points I would like to make:
- You can’t fight demand.
- People need more options and not less.
- The industry does not want to get borrowers in a cycle of debt. They’re open to regulation.
Author: admin
-
NPR gives a clear and unbiased view of the payday loan industry
-
Older post, but still relevant for Arizona
You can read the newspapers, but it’s hard to understand the underlying story, especially when it relates to politics and legislating. This blog post gives some pretty good insight to the ballot initiative in Arizona.
It’s anti-payday lending, but it’s a good read.
-
PDL industry growing, but more expensive
The industry is growing, but it’s becoming more expensive to operate. QC Holdings increases revenue, but defending payday loans cuts into earnings. QC is still growing and making money, but is the profit squeeze a trend or just a blip?
The industry has become more proactive in the legislation and espcially in PR and public opinion initiatives.
There are definately some large corporations in the PDL industry. If you would like to learn more about QC Holding, this is a great place to start.
-
Illinois Pols Receive More From Payday Lenders Than Any Other State
Why do people autoatically assume that this is a bad thing? Providing campaign contributions is a good thing. There isn’t a single effetive organization out there that doesn’t donate to campaign funds. The industry is operating in good faith above the table.
It looks like Illinois’ lenders are pretty organized compared with other states. Payday lending is a complicated issue. Many people need short term capital. It’s important to try and get it right for both sides. No one is against regulation, just make it reasonable.
Here is the article.
-
Canada’s working with lenders
Cananda is systematically placing caps on payday loans. The average cap is around 25%, which in my opinion is pretty reasonable for the lender.
Nova Scotia is in the process of setting a cap and British Columbia will probably be next. Manitoba recently set it’s cap at 17%.
Apparently, payday lending is a billion dollar industry in Canada.
Stan Keyes, president of the Ontario-based Canadian Payday Loan Association, said he’s hopeful Victoria will come up with a cap that is fair to both consumers and the industry.
-
Payday Lenders Get on the Arizona Ballot
Arizonans for Financial Reform received its qualifying notice Friday. In order to make it onto the ballot, they needed 153,365 signatures.
The payday loan industry is trying to remove a drop dead date of 2010 for payday loan reform.
I guess it’s in the voters hands now. I wonder how it will display on the ballot? Nobody likes it when you take away their options.
-
Legislators ignore payday loan bills
Fired Up Missouri is a popular political blog. They obviously don’t mind throwing darts at the GOP regarding the PDL industry. I guess they’re fans of free markets.
Missouri have some of the best pro-lender laws in the nation.
-
Who’s Right? Maybe No One?
“In a study conducted by the Federal Reserve Bank of New York, researchers found that states with bans on payday lending experience an increase in bounced checks, higher rates of bankruptcy, and more complaints related to collections” writes Matthew Glans in the Illinois Daily Herald titled “Payday loan bill is regulatory overkill.”
Eight days later, in the same newpaper, Debbie Goldstein of the Center of Responsible Lending writes: “According to CRL’s research, borrowers who receive five or more loans a year account for 90 percent of the lenders’ business.”
The one thing I don’t get is that the payday lenders have put the loan sharks, more or less, out of business. Isn’t this a good thing?
-
An Econoist’s View of the Payday Loan Industry
“As we are becoming increasingly aware at both the national and the local level, credit markets cannot and will not work effectively and efficiently unless both lenders and borrowers, creditors and debtors, are permitted to experience the consequences of their credit decisions, for good or ill.”
Tom Lehman, Ph.D., Associate Professor, Indiana Wesleyan University
See the full report here.
_ -
Lending Tools and How To’s
CURRENTLY UNDER CONSTRUCTION