A Poor Business Model

Pennsylvania has a ruling from the Supreme Court of the Commonwealth and they want their citizens' money back.

http://pittsburghlive.com/x/pittsburghtrib/s_570276.html

Consumers should decide whether to have access to payday advance services said the Community Financial Services Association of America (CFSA) as it announced a referendum to overturn the recently passed law effectively banning payday advances in Ohio.

The referendum would repeal Substitute H.B. 545, which was signed by Governor Ted Strickland on June 2, 2008. The Reject HB 545 committee must collect 241,365 valid signatures before September 1st in order to qualify for this November's ballot. Voters will be asked to oppose enactment of the Sub. H.B. 545 as adopted by the General Assembly

This ruling is ridiculous. Now, instead of having a viable credit option when money is tight and bills need to get paid, these customers will end up overdrafting their checking accounts. Or their utilities will get shut off. And those fees are steeper than $15 per $100 borrowed. (Too bad we can't associate an APR with an overdraft fee).

So, Nice work Ted Strickland. You've intefered with the one thing that makes this nation great - the free enterprise system... Here's to government making decisions for us! Oh, and for eliminating 6,000 jobs.

Very interested to see the long-term outcome,

Jim

An advance america cash advance can be a great way to get the funds you need to handle unexpected finances. Be sure to do your research when deciding on the company to give you these funds. There are many options and it may save you time and money if you make the right decision.

The republican controlled Ohio legislature deserves credit for joining with Governor Ted Strickland to cap payday lending interest rates at 28% APR. Payday loans are not a viable credit option, but instead a drain on our economy and our communities. Payday loans do not provide a net tangible benefit to 99% of the industry's consumers and typically put borrower's in a multi-month debt cycle. I congratulate the Ohio legislature on finally doing the right thing and protecting consumers from predatory business practices.

Ted Strickland, the Governor of Ohio, is in the process of trying to convince people in his state to vote in favor of House Bill 545. Enacted unethically, without the voice of the people earlier this year, support of the bill would put a cap on the annual interest rates that no fax payday loan companies can charge to 36 percent. This would mean that for every $100 that a lender issues to a customer, they can only make a measly dollar and change. Considering that no business can survive by making just over a dollar per transaction, House Bill 545 would drive this entire industry out of the state. What’s worse, is that democratic presidential candidate Barack Obama now is trying to do Strickland one better, as per his campaign promises. Should he win the White House, Obama has gone on record stating that he wishes to impose Strickland’s interest rate cap nationally. What this will definitely mean is that people will be much more hard-pressed to make ends meet in tough times. Therefore, if their job pays them a lot less than they’re used to, or life throws them one of its little surprises, hitting rock bottom is almost inevitable. Such measures illustrate the importance of voting and 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/

We as a citizen of the country have the right to participate in the said discussion about the payday loans. Ohioans speak up or lose your financial freedom! If you rely on payday loans for short-term financial assistance your access to that help could be eliminated if you don’t vote NO on House Bill 545. Ohio banks and credit unions are supporting HB 545 so they can put payday lenders out of business. You’ll have no choice but to turn to the banks when you need a personal loan, and the banks will try to offer you overdraft protection, which of course you will need just in case you overdraft your account. Thing is, people constantly criticize the “monster” 391 percent APR on faxless payday loans, but don’t realized that overdraft protection usually costs over 1,000 percent APR. With that in mind, I think I’d rather get a payday loan than overdraft my account. So vote NO… unless you would like to be taken advantage of by your bank. Plus, if you vote NO on HB 545, you will help your neighbor keep his job, along with 6,000 other people who work in the payday loan industry. Chances are the people that lose their jobs because of HB’s 545 proposed government overregulation will leave Ohio to work and/or live, which will creates a tax and spending-power deficit, when the state’s economy is already struggling. I’m sure the 1,600 empty storefronts will be really attractive to prospective businesses. Or not! If HB 545 passes, Ohio’s economy is going to be even worse off. Read more about HB 545 on the blog at http://ideatreks.wordpress.com/2008/05/01/ohio-house-bill-545/. Vote NO on HB 545 if you want to save Ohio’s economy.
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/