We don’t have enough information and we don’t know how high it is on Obama’s list of priorities. One thing we do know is that he likes the 36% number. Here is a linke to his entire plan.
At the end of the day, he’s still a politician. President-elect Obama will also have a lot more pressing issues like: the Iraq war, healthcare, terrorism, the environment and taxes.
I just hope that he realizes you just can’t put people out of business. The demand exists for small, short-term loans.
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.
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.
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.
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?
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.
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.
People just believe what they want to believe. Having been part of the PDL industry for quite awhile, I’ll say that the payday loan product has absolutely nothing to do with the mortgage crisis.
In the end, most of the people that consumer groups “look out for” don’t want to pay anyone back, if they don’t have to regardless of the interest rate. I can’t believe the junk newpapers will print.
Deeming Illinois “the Wild West of payday loans,” about 75 people from across central Illinois gathered Saturday at First Presbyterian Church downtown for a predatory lending summit. But it was visual bits that portrayed the Central Illinois Organizing Project’s most graphic messages, including a mock funeral with black-draped coffin marked “the American Dream”
Well guess what, the people that offer services have a right to “the American Dream” also. There is definately a happy medium between 36% and 600%. Lenders are moving towards regulation. The biggest problem I see is that the people who want to get rid of the payday product probably don’t use it.
Here is a much better (and hilarious) explanation of why we’re in a mortgage crisis.
The rumors are true. From two of the writers/producers of the Sopranos comes “Easy Money”, a story about a mom and pop payday lending operation.
It’s hard to say what this type of publicity will do for the industry. I think one of the biggest misconceptions of the PDL industry is that these companies are small operations. The truth is that there are some pretty large players
I guess we’ll see.