Payday Lending Up North

It looks like the Canadian Payday Loan industry has started a blog of their own, Advance View.  According to Advance View, “If you follow the industry closely then you are aware of a number of developments in the regulatory field that have been unfolding recently and that will continue to unfold in the months ahead. We [...]

Ohio update: 14 Senators sign 36% rate cap bill

From today’s Columbus Dispatch:
“If Grendell’s bill or House Bill 333 were to pass, the payday-lending industry says its more than 1,600 stores would be put out of business quickly. Under a 36-percent rate, they would be allowed to charge less than $1.50 per $100 borrowed on a two-week loan. The current rate is about $15.”
 

Michigan Debt Collection Laws

Nitzkin & Associates’ debt collection blawg often contains interesting pieces regarding debt collection regulations and the lending industry in general. Today’s post is no exception and contains some food for thought comparing the difference in Michigan debt collection laws regarding bad checks written to most businesses versus bad checks to payday loan companies.
Essentially, [...]

26,000 constituent letters delivered to OH legislators

More than 26,000 letters from payday lending customers and employees have been delivered to state legislators in Ohio.  The customers who’ve actually used the service should be a vital part of the payday lending debate.
From a resident of Columbus, OH:
Asthtabula County doesn’t have a lot of good jobs for people. You do run short paycheck to [...]

Why do payday loans cost what they cost?

Payday lenders are often asked what is the minimum fee they need to make a profit and stay in business. While this figure differs company by company and city by city, the payday loan product offered by Goodwill provides insight to the cost of offering payday loans. 
Prospera Credit Union, in partnership with Goodwill, a non-profit, [...]

Update: South Carolina

The House subcommittee action in South Carolina is described in this article in the State Newspaper.  No details on how quickly legislation is moving. 

Some Arkansas payday lenders stay open

This article says some Arkansas payday lenders have tweaked their business model to operate under different regualtions.  From the article:
“One model involves cashing checks and charging membership fees,” Allen said. “It’s only limited by a person’s creativity. 
“The idea is for them to separate as much as possible the interest from the loan,” Allen said.
The entire article [...]

Report on Ohio hearing

The payday lending industry was well represented at the Ohio hearing yesterday by D. Lynn DeVault, President of the Community Financial Services Association, and Darryl Dever, a lobbyist for the state association.  Ms. DeVault made the important point that the rate cap law in Oregon forced payday lenders to close their doors.  From the article:
Lynn DeVault [...]

Congress on Racial Equality testifies at Ohio payday lending meeting

Niger Innis of the Congress on Racial Equality (CORE) will testify today at a public hearing on payday lending in Ohio chaired by Attorney General Marc Dann.   CORE, which believes in consumer choice and free markets put out this news release.

Update 2: Arkansas Payday Lending

Most lenders are complying with the Attorney General’s order to shut down.  Advance America is developing a new service according to this article. 
Advance America, which bills itself as the nation’s largest payday lender, will “service existing customers that were in good standing with interest-free loans” until new products up to par with the attorney general’s [...]