I thought this was interesting. Cash Store of Canada released an earnings report. They posted a $5.5M profit in the second quarter. This is a 28% increase from the previous year. What intrigued me was the micro-loan product via text messaging. I guess they’re doing it in Finland and Sweden. That part of the world […]
Category Archives: payday loans
Liberals feeling confident about payday lending reform in Iowa
First, two Business Week articles involving payday lending in one day. That’s a first. In an article titled Liberals push range of issues at Iowa Capitol, there is a lot on the agenda. Most of it will not get passed but their feeling good about their chances of enforcing a new payday loan law. Does anyone […]
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Arizona payday loan bill stalls
Republican Rep. Andy Tobin of Paulden pulled his bill from a committee hearing agenda Monday but vowed to look for more support and bring it back. On June 30th payday lenders, in Arizona, will lose their exception from the 36% usury cap. Today, there are over 600 payday lending locations in Arizona. That would be […]
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2009 better than expected for payday lenders
Lynn DeVault, board chair of the Community Financial Services Association of America, says, “In the end, things have been relatively positive.” Currently, the CFSA is tracking about 178 bills in the states. It opposes 101 of those. The states that will likely have a lot of attention in 2010 are: Arizona, Wisconsin, Colorado and Ohio. […]
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Banking on the unbanked
Interesting op-ed about the check cashing industry in the Boston Globe titled “Banking on the Unbanked.” It basically praises check cashers and rips banks a new one. Take this quote for example: “A recent study by the Pew Charitable Trusts found that the nation’s 12 largest banks, responsible for issuing more than 80 percent of […]
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Compete with payday lenders. Don’t put them out of business.
Legislators look for ways to make payday loans less profitable all the time. This is bad for the borrower b/c it makes the cost of doing business higher. This cost, ultimately, gets passed on to other borrowers. In an article titled “Loan program helps ‘unbanked’ climb economic ladder: FDIC program aims to help low-income consumers […]
Also posted in payday loan alternative
A rational comment versus a stupid comment
Ohio payday lenders have been in a dog fight for years now. Consumers want payday loans while consumer groups do not. I thought this article titled “Payday loans the only way to get by, some customers say” does a decent job of covering both sides. Here is an example of a rational comment: Ted Saunders, […]
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Personal responsibility and the CFPA
Payday Pundit shares a very intelligent article about the CFPA (Consumer Financial Protection Agency). I would like to add my $0.02. Start by reading this blurb from the article by Megan McArdle: “For some people this is an argument for laws that make it unprofitable to loan money to people who are likely to default, […]
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Taking a different angle on payday loans
Ray Fishman writes a thought provoking article in Slate Magazine about the psychology of payday loans titled “400 Percent APR—Is That Good?“ What I like about the article is that it approaches payday loan abuse from the correct angle. Basically, he says that most people using payday loans do not understand the true cost of […]
Also posted in Legislation, national
