Category: payday loans

The Ohio Department of Commerce has notified 3 payday lenders that the state intends to revoke their license.  The three lenders are Check into Cash, QC Financial and 1st Choice Financial.

The Department of Commerce claims that the lenders are requiring the check cashing fees as part of the loan.  Tom Linafelt, of QC Financial, denies the allegation saying that “the company’s check-cashing services are not provided as a condition of the loan.”

Currently, there is a bill that’s been sitting in committee for 8 months.  Many legislators are worried about fewer credit options for borrowers.  They should be concerned, and the bill should die a slow painful death.

You can read the full article in the the Columbus Dispatch.

South Carolina officially has a database.  Since the law limits one loan at a time, it’s pretty easy to lock people out of the system.

I know some lenders handed in their licenses and are now operating as installment lenders.  These loans carry lower interest rates, but are for larger loan amounts and longer terms.

Anyone interested in this model, please contact Nick Sparagis at nick.sparagis@introxl.com.

Someone light some candles and pop some champagne.   I like this strategy.

I’m a little surprised to be reading this in Business Week.

According to the Washington post, the CFPA is losing steam since the Democrats lost their senate seat in Massachusetts.  There is a national debate over whether government intervention is a solution or lead to a bigger problem.

Do people really think a government agency can fix things?  Really?

You can read the full article in the Washington Post.

“In five years, they paid about $10,000 in interest on about $2,700 in loans.”

Now, it’s stories, like this, that catalyze the push to regulate payday loans.   The CFSA’s best practices tells their members to limit rollovers to 4.  This would make it 5 loans total.  So how did this person get to $10k in five years?  This is what the industry has to explain to the Missouri legislature.  Someone should open up an internal investigation and respond to this.

If this person is the one percentile, then people should know that.

Payday Pundit makes a good point in his article titled ‘They Obscure the Facts.”   It’s worthing reading his source article which is an op-ed piece titled “The debt trap of payday loans“.  Where is this person getting their information?

You can read the full Missouri article titled “Payday loan cycle targeted by governor, Democrats.“

Richard Rawle, CEO of Check City, presented the $10,000 check in support of the efforts to assist.  I think that’s exteremely generous.

If you want to donate, you can do so at the American Red Cross.

Jonathan Mintz is the New York City Department of Consumer Affairs.  He compiled a “The Top 10 Financial Products and Services that Must Be Regulated in 2010” in the Huffington Post.

Considering that payday loans are not even in NY, I would not call this guy an expert.

I guess people want the government to start setting the price and terms for everything we buy.

I’m all for the government protecting children, but we’re talking about voting adults.  This micromanaging of adults and their financial decisions is getting out of control.  It’s only making this country full of dumb people that want the government to fix all their problems.

An intelligent person put together a pretty dumb article titled “Payday Loans vs Starbucks vs McDonalds“.

What’s the point?  This never made any sense to me.

Democratic Assembly Speaker Mike Sheridan thinks the payday loan lobbyist are starting rumors that he would be removed from power.

The bill that could cap the rates at 36% has about 43 representatives on board.  Unfortunately, they did not say how close this is to passing.

If you’ve got better information, please let us know.

You can read this article in its entirety in the Chicago Tribune.

As the old saying goes, “If it sounds too good to be true, it probably is.”

David Hernandez, of Downers Grove, is looking at between 6-14 years in prison.  He defrauded $6.3M between 2007 and 2009 from investors who believed he was running a very profitable payday loan business.

What surprises me most is that he was able to con over 200 investors.  I”m sure he used the CashNetUSA story to lure his victims.  CashNetUSA is one of the great success stories in the cash advance industry.  It sold for around $265M.

You can read the full story in the Chicago Tribune.

You can read more about the CashNetUSA deal in PDL Industry.