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 Posted: Tue Feb 05, 2008 5:48 pm Subject: Payday lending compromise bill clears committee
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I found this article and thought it would be interesting to other members.
| Quote: | Payday lending compromise bill clears committee
Associated Press - February 5, 2008 6:35 PM ET
RICHMOND, Va. (AP) - A payday lending compromise bill cleared a house committee today despite concerns that it will put the short-term, small-cash lenders out of business.
The bill passed 19-3 in the House Commerce and Labor Committee and now heads to the full House for consideration. The compromise was worked out between lawmakers from both parties after talks between the industry and anti-payday lending lobbyists stalled.
The bill prohibits borrowers from having more than one loan at a time or more than five per year -- restrictions that would be monitored by a database. Borrowers would have at least twice as long to repay the loan.
They would also be required to wait 24 hours after paying off a loan before taking out another one. Loans would be capped at 36% annual interest, but lenders could charge other fees similar to those already in place.
Last year, Virginians took out more than 3.5 million payday loans.
Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Personally, I don't see how this helps the consumer if the cap is 36% but, the lender can "charge other fees similar to those already in place."
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annie340
Joined: 08 Dec 2007
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Posted: Tue Feb 05, 2008 5:54 pm Subject:
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They should have gotten a lot more strict on them, 36% is still high and you are right what other fees that will tack on. Membership fees and other bs fees, they need to regulate all that too, maybe the house will tack on some more restrictions, hopefully.
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jos82003
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Posted: Tue Feb 05, 2008 5:55 pm Subject:
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jos82003
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Posted: Tue Feb 05, 2008 7:15 pm Subject:
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Jos,I hope the house can do something. Maybe if there are people here from that area, they can write or call their representatives. It may be worth a try.
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annie340
Joined: 08 Dec 2007
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Posted: Tue Feb 05, 2008 7:44 pm Subject:
Latest Blog Post : http://Lukesykwalker.yesdebtfree.org |
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Untill they destroy them, we all will hurt from these.
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Lukeskywalker
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Posted: Tue Feb 05, 2008 7:51 pm Subject:
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Interesting article, Annie. But I still say what's really needed is federal legislation on them so some standards can be established. Right now, we have a hodge-podge of regulations across the states.
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kscornell
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Posted: Tue Feb 05, 2008 9:10 pm Subject:
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36%? And fees as described?! Sorry, folks. This reads like a 'feel-good' bill.
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unclewulf
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Posted: Wed Feb 06, 2008 12:20 am Subject:
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kscornell I agree with you. We need to get our congressional representatives involved and get them to see just how serious this is considering how many families are devastated by these loans.
unclewulf, yeah, I think it's a "feel-good bill" for the payday loan companies. It's just window dressing to make consumers feel something is being done on the issue.
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annie340
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Posted: Wed Feb 06, 2008 8:23 am Subject:
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Yeah, it's the same thing that happened in Oregon. They capped the interest rate at 36%, but still allow a processing fee! So it still ends up being like $12 for every $100 borrowed!
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goudah2424
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Posted: Wed Feb 06, 2008 9:13 am Subject:
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They need to create laws that protect the consumer NOT the PDL companies. All this is is a bill to give certain rights to these crooks.
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cdollar
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