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 Posted: Thu Sep 13, 2007 8:47 pm Subject: Thought this might be of interest
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I was just reading the news online at one of my local news sites and this story caught my attention, and I thought I would repost it on here:
| Quote: | Former Employees Criticize Payday Lender's Business Practices
Last Update: 11:24 pm
MASON, Ohio (AP) -- Former employees of a payday lender based inthe Cincinnati suburb of Mason have criticized the company'sbusiness practices.
They say they were pushed to solicit minority and low-incomeresidents and get them to go deeper into debt.
A former district director of operations for Check'n Go in theWashington, D.C., region and two former Washington-area store managersfor the nationwide company made the comments at a news conferenceWednesday in Washington.
The news conference was held to supportefforts to get the Council of the District of Columbia to regulatepayday lenders.
A statement released Wednesday by Check'n Go said that thecompany adheres to all local regulations and industry bestpractices and accused the former employees of making false andreckless statements.
Copyright 2007 by The Associated Press. All Rights Reserved.
Copyright 2007 The E.W. Scripps Co. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. |
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blueangelkc80
Joined: 11 Sep 2007
Posts: 129
Debtcc Points: 2832
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Posted: Thu Sep 13, 2007 8:53 pm Subject: reply
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Yes, it is interesting. And sad. Because it's true. The "poor people" are being targeted and then sucked in to an endless cycle that breaks them even more.
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cannr
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Posted: Thu Sep 13, 2007 8:56 pm Subject:
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I tend to spend some time online looking at the different news websites to keep up on whats going on because I really dont have a life at this point and especially since a few of us are waiting on a friends killer to get sentenced by the end of the month. But I was suprised to see that story about the former pdl employees turning on the company.
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blueangelkc80
Joined: 11 Sep 2007
Posts: 129
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Posted: Thu Sep 13, 2007 9:07 pm Subject: reply
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Damn, blue! You just woke me up on your last post! Hell, I was getting tired and read that and was like "What?????" 
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cannr
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Posted: Thu Sep 13, 2007 9:13 pm Subject:
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Sorry cannr, didnt mean to suprise you like that. 
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blueangelkc80
Joined: 11 Sep 2007
Posts: 129
Debtcc Points: 2832
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Posted: Thu Sep 13, 2007 9:28 pm Subject:
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I forget where I was looking earlier online but I had also come across a story about I think he's a congressman from NKY: Geoff Davis and him opposing some kind of legislation related to PDLs. I will have to see if I can locate it again.
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blueangelkc80
Joined: 11 Sep 2007
Posts: 129
Debtcc Points: 2832
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Posted: Thu Sep 13, 2007 9:32 pm Subject:
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Here is the story I had found earlier, its from about a year ago so I am not sure what ended up happening with the legislation.
| Quote: | Congressman Davis touts his payday loan proposal
September 20, 2006 - Frankfort, Kentucky
Northern Kentucky Congressman Geoff Davis, who has become embroiled in a debate over limiting predatory lending practices, says his proposal goes further than the "knee-jerk reaction" amendment he opposes.
Davis, an Army veteran and freshman congressman from Hebron, has been criticized by consumer rights groups for opposing a 36 percent cap on payday loans.
Calling the idea "knee-jerk legislation," Davis said the 36 percent cap would drive payday lenders out of business and send customers into the arms of other predatory lenders whose loan amounts aren't limited to the typical $500 and $700 maximum of payday lenders.
Installment loan lenders can give loans for as much as $5,000 to individuals who typically end up rolling over the loan, generating more interest, because they can't afford to pay it back.
Davis spokesman Justin Brasell said the congressman's proposal would allow payday lenders to charge the fee they are charging up front now -- about $30 per $200 on a two-week loan, which rolled over through a year would calculate to an annual interest rate of 390 percent -- but would prohibit lenders from rolling over the loans if the customer can't pay.
In such cases, Davis' measure would require lenders to set up customers on a six-month payment plan with an interest rate capped at 20 percent annually, Brasell said.
Consumer rights advocates say they don't dispute there are flaws within the installment loan industry, but that isn't a reason not to rein in payday lenders.
"There are problems in the small installment loan market as well," said Jean Ann Fox, spokeswoman for the Consumer Federation of America, a group that has been pushing the amendment Davis opposes.
"A 36 percent rate cap as the outside limit, that may be high but that certainly is a vast improvement over 390 percent payday loans."
The issues are part of the annual spending bill for the Department of Defense. A conference committee made up of House and Senate members, including Davis, is debating his proposal and the amendment he opposes.
Beyond the interest rate issue, Davis said his proposal calls for other regulations to curb predatory lending to military personnel, including:
+ Prohibiting lenders from garnisheeing the salaries or wages of any active duty service members.
+ Prohibiting lenders from contacting or threatening to contact the borrower's commanding officer to collect a debt.
+ Prohibiting lenders from representing themselves as being endorsed by the military.
+ Preventing lenders from collecting debt while a borrower is deployed overseas.
"We're going to get this done," Davis said. "We're going to get a true credit protection issue done."
Payday lending executives have given Davis $11,450 for his race this year against Democrat Ken Lucas, according to an analysis by the Center for Responsive Politics.
Davis said that as a member of the House financial services committee, a wide spectrum of financial services executives contribute to his and other members' campaigns, much like they did for Lucas when he was in Congress.
Brasell said he expects the issue to be resolved this week. |
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blueangelkc80
Joined: 11 Sep 2007
Posts: 129
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Posted: Fri Sep 14, 2007 7:11 am Subject:
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I have to agree with this guy . . . . I think the best thing to stop people from losing everything to pdl's is make is so that you can't roll over the loan, and then make the pdl's let people make payments. This guy is spot on in my opinion.
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goudah2424
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