$117 Pizza?

The Payday Pundit likes pizza as much as the next blogger, but not enough to pay $117.   This CNN story is about how overdraft fees on a pizza purchase had a multiplying affect on one couple’s finances.  It also gives some good advice on avoiding a whole slew of expensive fees.  From the article:
Fees aren’t just a cost of [...]

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 [...]

New study: Payday loans help in times of natural disaster

Communities affected by natural disasters are more resilient and less likely to face foreclosure if they have access to payday loans, says a working study, “Payday Lenders: Heroes or Villains?” by researcher and University of Chicago faculty member, Adair Morse.
From the press release:
The study finds that payday lenders provide critical capital to people in disaster-struck communities. [...]

Half of Americans living paycheck to paycheck

Results from a survey by American Pulse found that 50.8% say they live paycheck to paycheck.

There are 4,678 banks in Ohio

A new study that says there are 1,638 payday lending stores in Ohio seems to be a very big story in the state. The above statistic, left out of every single story, is from this FDIC website that the Payday Pundit found in eight seconds.  You would have thought that at least one reporter would have found this to be an interesting [...]

Rep. McHenry calls for hearing on Center for Responsible Lending

The Payday Pundit just picked this up from last week’s  Credit Union Times site.   Rep. Patrick McHenry (R-North Carolina) wants the House Financial Services Committee to investigate a $15 million contribution the Center for Responsible Lending received from a hedge fund mogul.  CRL’s shenanigans are detailed in this report from the Consumer Rights League.

The Law of Unintended Consequences

The report from staff researchers at the Federal Reserve Bank of New York is continuing to pick up steam. 
As states look at consumer credit issues it’s important that they look at the facts and carefully examine the real impacts of legislation.    The Federal Reserve staff study does just that and finds that one of [...]

Morgan study continues to get noticed

The National  Center for Policy Analysis, a think tank out of Dallas, is talking about the Dan Morgan payday lending study on its web site.   The study, which will be published soon, will have a major impact on this debate.   It will be an interesting contrast: a peer reviewed, published study by a respected economist (Morgan) versus [...]

Motley Fool: How to waste $36 billion

The Motley Fool picks up on the GAO report finding that, in 2006, consumers paid $36 billion in bank fees.  The Fool is highly critical of the government but also critical of consumers who don’t understand how much they’re paying in fees.  
How does this relate to payday lending?  Storefront payday lenders collected $6.5 billion in fees in 2006.  And payday lending [...]

Full GAO report on bank fees now available online

GAO: BANK FEES: Federal Banking Regulators Could Better Ensure That Consumers Have Required Disclosure Documents Prior to Opening Checking or Savings Accounts