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Payday Lending Cap Springs the Trap
I heard from a few payday lenders following my last blog post lauding the Ohio legislature for their passage of a 28% interest rate cap on payday loans. They thought I was being callous to the job loss that would be brought on by the new law. They gave me momentary pause. But then I considered the work of my former colleague Leslie Parrish, who has moved on to work at the Center for Reposnsible Lending. She argues convincingly that measures short of an interest rate cap fail to fix the problem.
The Ohio Coalition for Responsible Lending has the CEO of Cash America on record as describing the business model as one that strives to transform customers into a "repetitive, long-term customer, because that's really where the profitiability is." Well, that may be so but it creates a debt trap that can be difficult for people to get out of.
The action of the Ohio legislature is getting pretty high marks all around the state. Here is the Cleveland Plain Dealer's editorial of support. More importanlty, it is serving as a model for others aound the country who seek to limit the debt trap.
If I had 20 million dollars...I'd buy you an election!
After reading a few news stories that came out of the State of Virginia over the last few days, I can’t get what should be a great Barenaked Ladies remix out of my head: “If I had $20 million dollars, I’d buy you a legislature!” Check this out: http://www.dailypress.com/news/opinion/dp-ed_lobbying_edit_0730jul30,0,1....
The industry succeeded in BUYING higher interest rates! Now they can charge 592% in Virginia, much higher than the already outrageous 391% they charge in Ohio.
What is even more amazing is that the payday lenders’ lobbying association (CFSA) brags about this on their industry blog (paydaypundit.org)! They are proud of the fact that they have bought and paid for a favorable Virginia General Assembly. They should be ashamed.Thank goodness the Ohio General Assembly didn't succumb to campaign contributions and decided to act in the best interest of the people.
Payday lenders are now trying to buy an election in Ohio. There is no doubt they will stop at nothing to try to dupe Ohio voters into overturning a great consumer protection bill, House Bill 545. Their mantra is going to be "secure your financial freedom," which is not very original. How about a little freedom from exploitation!
Payday Loans........
The Payday Loans industry has been the main target for corrupt politicians from all sides. They are searching an increase in voter support disregarding what’s best for their citizens. Several states including Georgia, North Carolina, and Oregon has successfully wiped out the payday loan industry. For example, in Georgia, foreclosures, bankruptcy filing and bounced checks has raise tremendously after the cash advance product was done away with. Despite this unfortunate fact, several governors continue to try and follow this suit. Presidential hopeful, Barack Obama and many other politicians with high positions have joined the march to wipe the industry completely off the map. If this action takes place, the true possibilities of increased unemployment rates, debts and foreclosure will also take its place.
"Easy Money"-(Payday Loan Industry)
On October 5, 2008, the CW Network premiered a new drama from the creators of The Sopranos. The new show, called Easy Money, is said to be about a family who owns and operates a “high-interest loan” business called Prestige Payday Loans. It’s always great to see shows being produced in an effort to bring underrepresented cultures or things into the limelight; as long as it constitutes a fair and balanced portrayal of the subject matter at hand. However, by taking one look at the trailers for the new drama, as well as a few of the episode synopses, my biggest fear is that the premise for the show is based solely on vicious media stereotypes. With this in mind, think of the last time that you viewed a news story either online or on television news talking about the payday loan industry. Chances are the story you saw or read wove tales of “real” persons’ woes fueled by their getting bogged down in an “endless cycle of debt.” Worst of all, according to such “articles,” it all started when they needed to borrow money to fix their car or pick up the tab on another unexpected bill. Such stories are further proof that, for the sake of winning the ratings wars, news networks will latch on to and report only the juiciest, most scandalous aspects of any big story and completely ignore everything else. It seems as if the CW network is following suit in an effort to recover viewers lost during the Writer’s Strike. One, for instance, opens with the tag line, “for this family of loan sharks, money is easy.” Surely, it’ll be interesting to see whether or not the CW or the show’s creators learned what the industry is really about. Chances are, probably not.
Post Courtesy of Personal Money Store
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Ohio’s Governor,.....
Ohio’s Governor, Ted Strickland, is on a movement to convince the people in his state to vote in favor of House Bill 545. Despite the voice of the people earlier this year, this bill would put a cap on annual interest rates that no fax payday loan lenders can charge up to 36 percent. For every $100 that a lender issues to a customer, they make a pitiful dollar and some change. That means there would be no money-making in this industry at all and House Bill 545 will drive the entire industry out of the state. In addition to that, Democratic presidential candidate, Barack Obama, is also supporting this action. Obama has gone record stating that if he does win the White House, he will follow through with his wishes to impose Strickland’s interest rate cap nationally. In return, what alternative will the offer the people when they are stuck trying to make ends meet? Hitting rock bottom is almost inevitable. This expresses the importance of having your voice heard.
Post Courtesy of Personal Money Store
Professional Blogging Team
Feed Back: 1-866-641-3406
Home: http://personalmoneystore.com/NoFaxPaydayLoans.html
Blog: http://personalmoneystore.com/moneyblog/
Condition of the people when Payday is strained!
Most of the people in Ohio had used payday loans atleast once in their emergency situations. The reason is when the people need an emergency cash, the only place where they can get a loan without any security and within few hours is a payday loan company. When payday is banned it is people of Ohio who is going to feel the trouble.
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