“Responsible payday lenders have helped millions of Kansan familes”

Tom Linafelt of QC Holdings was obviously annoyed with an uninformed editorial in the Kansan newspaper.   Here’s his letter to the editor, which goes on to make the key points that:

The vast majority of Kansan use payday loans responsibly, and;
Banning payday loans will force customers into more costly options. 

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.”
 

“We didn’t make any money on it” says Credit Union

Can you guess what the IT is?  Their short-term payday loan “alternative” of course.   The Herald Newspaper of South Carolina discusses the Family Trust Federal Credit Union’s experience with short-term loans briefly in this story.

Skepticism about FDIC’s small loan program

This story from the American Banker (subscription required) underscores the challenges that banks face making a profit from small, short-term loans.   A few interesting quotes:
Some bankers participating in the pilot program say it is possible to make money in this line, while others say they are concerned less about making an immediate profit than about [...]

Payday Lending point of view in Cleveland Plain Dealer

James Frauenberg II, President of the Ohio Association of Financial Service Centers and a senior exec at Checksmart, had this to say in today’s online version of the Cleveland Plain Dealer:  
       “The payday lending industry isn’t perfect. Not all stores conform to the tough rules imposed on CFSA members. And sometimes, payday loans are not the [...]

Deadline in Arkansas for payday lenders

As this story reminds the Payday Pundit, today’s the day payday lenders in Arkansas are supposed to comply with the state AG’s order to shut down.   Recent stories indicated that only 22 stores of 156 were complying.    It looks like the courts will decide this.

Industry critics want to re-open VA payday lending fight

If anything highlights the unreasonableness of payday lending critics, this article from the Daily Press in Virginia does.  Simply put, nothing short of a complete ban on payday lending will please them.  They are not to be believed when they say they support ”reforms.”    The point if made by an industry defender:
        ”…a spokesman for Advance America predicted [...]

Consumer Debt Deliquencies Up, Says Bankers Group

The Payday Pundit wonders why an American Bankers Association survey that says fourth quarter consumer deliquencies are up isn’t getting more media coverage.  Specifically:
Home equity loan delinquencies increased to 2.39 percent from 2.28 percent.
Property improvement loan delinquencies increased to 1.81 percent from 1.60 percent.
Indirect auto loan delinquencies increased to 3.13 percent from 2.86 percent.
Direct auto loan delinquencies increased to 1.90 percent [...]

More Good Payday Lending Journalism

This could be a record.  The Payday Pundit is posting TWO fair and balanced stories in a row.  This one out of the Morning News in Northwest Arkansas carries the amazing headline: “Banning Payday Lending May Hurt Some.”   No kidding.
And the reporter, John Henley Jr. actually talked a customer and described his situation:
He has worked for the same [...]

April 8th showdown in Kansas City on Payday Lending fee

A ballot initiative in Kansas City, MO, to be decided on April 8th, would impose a $1000 fee on payday loan stores.  Dwight McQuade, a local payday lender, is interviewed in the article.   From the piece:
         McQuade told KMBC’s Martin Augustine that his customers are primarily middle class people who need a quick loan when the [...]