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Wednesday, June 20, 2007

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Jeremy

Right on Oregon! Not as good as West Virginia (who has banned the practice outright), but it's a good step in the right direction.

Bruce

I recently read a Reuters news article, written by Nick Carey, Mar 23rd, 8:15pm ET, titled, "’Pay day’ loans exacerbate housing crisis". I would like to clarify that there are some great inaccuracies and bias in this story that really must be pointed out.

I have had extensive experience with pay day loans, and, though I agree that the APR (annual percentage rate) is quite high, and people can get into trouble when they do not use these loans as they are designed to be used, this news report highly exhagerates the cost of a loan. Read from the article as follows;

"A pay day loan is typically for a few hundred dollars, with a term of two weeks, and an interest rate as high as 800 percent. The average borrower ends up paying back $793 for a $325 loan, according to the Center."

This is not accurate! And there was much more inaccuracy than this in the article.

A pay day loan from a legitimate financial retailer generally costs about $15 for every $100 up to $500. This means that for a loan of $100 for 15 days the charge will be $15, totalling the loan at $115, which must be quoted as an APR of 365%. the actual total pay off for a $300 loan is $345.

In reality it is only a fee that is being paid, not interest. However, government regulations require that it be quoted as interest, as an APR.

The only way that a short-term loan, a pay day loan, could build up to the absorbitent amount qouted in the news story, is if the loan were to be "rolled over", which is highly illegal in nearly every state that regulates these loans, so, thus, it would be highly improbable that there would be an average of borrowers that pay such amounts.

Pay day loans are for exactly what they are named. A short term small loan to be paid off by the next pay date of the borrower.

These loans have saved many a borrower, in a temporary financial pinch, to pay some bill(s), from much harsher penalties and costs that are incurred by banks and credit institutions if checks do not clear or payments are late.

The proper use of a pay day loan actually shows a personal and professional level of responsibility when it is used properly.

Yes, people do mis-use these loans, people get into trouble, people borrow beyond their means, and there are less than savory lendors who do not do what is right in order to avoid such disasters for their borrowers.

Pay day lendors must exercise great responsibility to protect borrowers and potential borrowers from becoming victims of borrowing beyond their means. That might even mean turning down a less than able and questionably qualified customer from borrowing.

I am disturbed to also hear lawmakers and politicians who are buying into mis-information and threaten the reasonable management and existence of a very useful and helpful service to many people.

Bruce - Washington

No Fax Payday Loans - David

Although it is true that our government regulates some free market activities such as prostitution and drug abuse, payday lending http://personalmoneystore.com. is fundamentally different because it is a financial service. In many cases the borrowers are using these loans to avoid other outrageous fees such as the shutoff fee from a utility or a bounced check fee from a bank. However, Credit and chainsaws are powerful tools for those who are able to use them safely. It's ironic that the government is backing actions that take away any responsibility from the consumer, and eliminate payday lending for the less fortunate entirely.

Payday Loan Advocate

A bill, which went into law in October of 2007, capped interest rates that payday loan stores could charge military personnel at 36 percent. The analysis behind such an extreme was based off the increasing number of American soldiers in the Army, Navy, Air Force, Coast Guard, National Guard, and other branches, who found out that loans were being taken out under their names without their knowledge. This sometimes sets them up to be victims of identity theft. Other times, their spouses take out loans in their names without their consent, and then defaulted on them. When the people ruled in favor of this measure, it seems they were assuming that members of the military, who traditionally are low-income folks, have little to no financial know-how. In 2006, both current Presidential candidates, Barack Obama and John McCain, gave eager support to the bill that took away a select group’s access to no fax payday loans. Now, Obama has gone on record, declaring that he supports the same idea that will affect the rest of us by driving the whole entire industry out of the country. With this in mind, think about our financial freedom that is at stake before casting your vote.

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/


Payday Loan Advocate

A bill, which went into law in October of 2007, capped interest rates that payday loan stores could charge military personnel at 36 percent. The analysis behind such an extreme was based off the increasing number of American soldiers in the Army, Navy, Air Force, Coast Guard, National Guard, and other branches, who found out that loans were being taken out under their names without their knowledge. This sometimes sets them up to be victims of identity theft. Other times, their spouses take out loans in their names without their consent, and then defaulted on them. When the people ruled in favor of this measure, it seems they were assuming that members of the military, who traditionally are low-income folks, have little to no financial know-how. In 2006, both current Presidential candidates, Barack Obama and John McCain, gave eager support to the bill that took away a select group’s access to no fax payday loans. Now, Obama has gone on record, declaring that he supports the same idea that will affect the rest of us by driving the whole entire industry out of the country. With this in mind, think about our financial freedom that is at stake before casting your vote.

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/


Fernando	Z.

During the prevous year the payday lender they were forced them to decrease their percentage of interest that they would be benefited for the middle class of society now that they would arrive to the hottest poiunt that they would probably approved those lawmakers that the 14% will be decreasing the higher percentage rate. Payday loans by not only the Virginia have joined the ranks of legislative caps, which are effectively bans, on payday lenders, capping interest at an inoperable 36%. But also the other cities they did leave a little space, but not much – lenders can charge interest for the first 25 days, but if the loan is paid back in 25 days, no interest or fees can be applied and afterwards only 36%. It seems that nearby states that had adverse affects from similar bans weren't enough to save payday loans in Virginia. Read more about payday loans in the Old Dominion at the Money Blog.


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During the prevous year the payday lender they were forced them to decrease their percentage of interest that they would be benefited for the middle class of society now that they would arrive to the hottest poiunt that they would probably approved those lawmakers that the 14% will be decreasing the higher percentage rate. Payday loans by not only the Virginia have joined the ranks of legislative caps, which are effectively bans, on payday lenders, capping interest at an inoperable 36%. But also the other cities they did leave a little space, but not much – lenders can charge interest for the first 25 days, but if the loan is paid back in 25 days, no interest or fees can be applied and afterwards only 36%. It seems that nearby states that had adverse affects from similar bans weren't enough to save payday loans in Virginia. Read more about payday loans in the Old Dominion at the Money Blog.

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