It looks like we’re going to see another state database. Wisconsin is trying to limit borrowers to one payday loan. The good news is no rate cap and I did not read anything about cool off periods.
All in all, it’s a much better looking bill than I’ve seen in other states.
Why they are banning title loans, I don’t know. Does not make any sense to me.
You can read some details in the Milwaukee Journal Sentinel.
This is an update to an Internet lending class action settlement. We reported back in July that the state of Wisconsin had settled a case w/ an online lender for $180k and forgave $432k in debt. The lender, Arrowhead Investments LLC, was not licensed to give loans in the state of Wisconsin.
This is official now, and the lender can not lend in Wisconsin for the next 5 years.
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.
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.
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.
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.“