Smartmoney: Banks boost fees for ATMs, overdrafts

Smartmoney takes a look at rising bank fees.

South Dakota bank to participate in experimental payday loan program

South Dakota’s State Bank of Alcester is one of 30 financial institutions in the nation taking part in a program to encourage banks to offer consumers alternatives to payday loans.
Payday Pundit is closely watching the experimental program by the FDIC.  As research has shown, banks and credit unions historically have been reluctant to offer payday loan alternatives [...]

Witchita Eagle Gets it Wrong

The Center for Consumer Freedom responds to a recent editorial in Kansas’ Witchita Eagle.
“…The Eagle editorial ignored these critical facts while narrowly focusing an ad hominem critique on the payday industry alone. These lenders earn a mere fraction of what traditional banks make on service fees. In 2003, bounced-check and insufficient-fund fees generated $22 billion in [...]

Payday lending in the Bluegrass State

In an op-ed, An ‘interest’ in Common Sense, Jim Waters of Kentucky’s Bluegrass Institute, writes:
“The Kentucky legislature’s attempt to regulate the payday-loan business comes with a large dose of irony.
“Recent budget circuses in Frankfort have resulted in politicians racking up a record amount of debt that requires payback at a high price. Yet, lawmakers want to [...]

LA Voice weighs in on sub-prime lending

Posted on today’s LA Voice, an online community covering the Los Angeles area…
“We need…greater trasnparency in the lending process going forward, but the last thing we need to do is stop lending to low income borrowers.
“In the last couple of days there have been two really good pieces– one in the Wall Street Journal that [...]

Oregon’s House Speaker “celebrates” lost jobs and the taking away of credit choices

 
In a stunt to gain publicity, House Speaker Jeff Merkley toasted the closing of payday loan stores in Oregon. Jeff Mapes of the Oregonian reports on the event.
Congrats Speaker Merkley.  While you are toasting the closing of legal, regulated, tax-paying Oregon business, hard-working Oregonians are left without a credit option and forced to choose between other, more costly short-term [...]

Tucson Citizen Taken to Task

The Tucson Citizen published an excellent response by  Matthew Glans of the Heartland Institute to this recent flawed column.
His closing point?
Payday lenders are serving a group of consumers essentially blacklisted from more mainstream lending practices. In the end, consumers, not government officials, should determine whether a payday loan will meet their needs.
Well said.

Update on Kentucky payday lending bill

Here’s a good summary of the latest on on payday lending legislation in the blue grass state.

Wackiest alternative to payday loans yet

This service is designed to help people borrow against their 401k plan.   It’s described in the first sentence as an alternative to payday loans.  The Payday Pundit is speechless, but a consumer advocate at The Public Interest Research Group in Washington had this to say:
“It blows my mind that, now that we’ve allowed people to go through all of their [...]

FTC: Consumers should compare alternatives before making credit choices

The Federal Trade Commission has issued an alert telling consumers to consider their alternatives before taking out payday loan.  Payday Pundit agrees. When making credit decisions consumers should consider all of their options and then determine what is best for their situation. The more options people have, the better off they are.  
Payday loans are a dignified [...]