Dylan Ratigan of MSNBC proves that he knows nothing about payday lending. Does he even read this stuff before he goes live?
Check out the video on the Huffington Post.
Category: payday loans
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Payday loans to the unemployed
Now that the Federal Government either puts the money directly into a bank account or loads up a credit card, it’s easier to collect on an unemployment payday loan.
People want to take a moral stand on this, but that’s not the point. They’re adults. They can make their own decisions.
Ignacio Rodrigues, a clerk at Van Nuys payday lender Ace Cash Express, said about a quarter of first-time borrowers he sees now use their unemployment checks as proof of income. This looks like a good business development tool, if this is indeed the case.
This made it to the LA Times, in an article titled “Payday lenders giving advances on unemployment checks.”
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Pretty good opinion
A staff writer named Vincent Carrol had this to say about payday lending:
“These people have jobs and checking accounts, otherwise they wouldn’t qualify for a payday loan. They’re not mentally incompetent. They make choices involving money all the time.”
You can read his full opinion on payday loans in his opinion titled “Don’t Judge Payday Loans in Haste.”
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Kentucky bill dies
I commend the Kentucky legislature for shelving a loan they did not feel comfortable with. The bill is almost dead.
On a separate note, these consumer groups will never be happy.
For example,
“The real problem is the cost of the loans,” said Rich Seckel of the Kentucky Legal Justice Center, an advocacy group affiliated with Legal Aid.
First, it was the cycle of debt. Now it’s the cost. Let’s face it. They’re disingenuous. They’re not going to be happy until payday lending is unprofitable.
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Arizona sunset approaches
On June 30th, without a new law, the payday loan industry in Arizona could disappear.
Industry lobbyist Lee Miller acknowledged that the industry’s critics have the leverage of the June 30 sunset: The industry dies with no reauthorization.
Read more in NAZ Today.
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I just fell out of my chair
The Associated Press ran an article titled “Payday Loans: How they rate against alternatives”
These figures are provided by the CFSA, but I’m glad that our side is getting some press.
Fee — Loan Type — Annual Percentage Rate
$15 — Payday loan — 391 percent
$29 — Overdraft fee on checking account — 755 percent
$37 — Credit card late fee — 965 percent
$56 — Bounced check fee — 1,449 percent
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Bonehead comment of the day
“We’re not seeking to close the doors of a business here,” Jerstad said. “I am all in favor of small businesses. But we’re seeking to put a cap on this, and 72 percent is really a generous cap, I think.”
Can I give Mr. Jerstad some advice? Don’t think, you’ll hurt yourself. 72% is $8.28 on a $300 loan.
You can read more in the Argus Leader.
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What’s next in Wisconsin
Well, there is a bill on the floor. It’s got a lot of the same components as other states w/ databases. Payday Pundit does a good job summarizing the bill.
One thing to note, the bill will cap the loan and fees at $600, which means the max loan will be a $500 advance, if the lender charges $20 per $100.
The one-at-a-time makes life difficult. There are so many lenders Internet and store front, that there are a lot of denials. Let’s face it, time is money. it’s a drain on the operator.
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The news today
Who Dat is the news today. In honor of an excellent Super Bowl game, there will be no news today. Congratulations to the New Orleans Saints.
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Payday entrepreneur looking to grow
Chuck Brennan is trying to become a national player in the payday loan arena. From this article titled “Pay-Off for Payday Loans“, it looks like he’s on his way.
There are a lot of sophisticated 20 store operations out there. What’s it take to make that leap to 300 stores? Many people will say that those days are over, but they say that stuff in every industry. It’s never true.