District of Columbia Passes Payday Lending Bill

As you may have heard, a close vote on a procedural motion in the U.S. Senate today means that the residents of the nation's capitol may not get the right to vote any time soon. But not all of today's news about democracy in the District of Columbia today was bad. D.C.'s City Council has the power to enact local legislation and today it voted to pass the Payday Loan Consumer Protection Act, which will make payday lenders subject to the District's 24% interest rate cap. Although the bill had been the subject of some intense and questionable industry lobbying efforts that continued up until the last minute, the members of the Council voted overwhelmingly in favor of it. The only dissenting vote was cast by D.C.'s unpredictable former mayor, Marion Barry, who originally cosponsored the bill but then made a bizarre about-face for which he still hasn't provided a satisfactory explanation.

Comments

[No Fax Payday Loans - David]

Payday loans are two week, not annual loans. http://personalmoneystore.com. Usury doesn’t apply to payday lending, payday loans compare favorably to many consumer alternatives, even when expressed as annual percentage rates for two-week terms. The hard reality that even the employed, hard working people sometimes fall short of cash between paydays. Although some are against to this kind of money lending transaction, many consumers are still patronizing it because it’s easy to access. Eliminating credit options only hurts consumers.

[Debt Help Review]

24% seems like a reasonable cap to me. No consumer should have to pay more than that. The 36% rate that I think I've heard is in most states is ridiculous.

[Donald]

The foreclosure market is increasing on its pace and many people are trying to buy the foreclosed homes as they are getting it at less than market value.

[Payday Loans]

"he flipped on the legislation because he feared it would have harsh effects on the payday loan industry and its employee."

As a person in the Payday Industry, I do believe we need to weed out the pirates, but further legislation needs to be considered carefully.

[John]

The foreclosure market appears to be expanding with no signs of relief. The combination of overextended sub-prime mortgage holders and an ominous economic slowdown indicate that this is a trend that is likely to continue for at least the next year. With all the negative news in the wind, should you venture into foreclosures now or wait for the bottom of the market to hit?
http://www.thejohnbeck.tv

[Brian]

A couple weeks ago I saw a quote from Barry saying that he flipped on the legislation because he feared it would have harsh effects on the payday loan industry and its employee. I recall seeing something to that effect in Washington's City Paper. See also http://www.washingtoninformer.com/ARPaydayLoans2007Jul19.html