Are There Any Payday Legislation Pending?

In OH beginning 1/1/07 it will be much more difficult for a person to obtain a pdl. It is linked with the Predatory Lending Law.

Steelers--

Is this for storefronts or internet or both?

That's good news, Steelers.

Both. It also gives the AGs office authority to pursue them, right now it is up to the Division of Financial Institutions to do that.

I'm glad to hear this news. 1/1/07 is tomorrow :D

I know. Should I test it? Then back out? LOL just kidding.

I'm glad to hear they'll have the authority to go after these guys, Steelers. I think we'll see a lot of these PDLs backing away.

Yes, I believe it will set even more limits on the interest they can charge which should put them out of business.

I think we should celebrate each time one goes out of business!

I think they should ALL be put out of business - the internet and the storefronts, both. None of them amount to much more than loan sharks, in my opinion.

That's our hope, Sue. Then we can really celebrate!

Sadly, Utah is one of the most lenient states in the country.

Here's a link I everyone might be interested in:

deseretnews.com/dn/view/0,1249,635159502,00.htm

Link made inactive as per forum rules - Mike

It is already illegal in WV. 18 have been dealt with so far and can no longer give loans. 14 to go in February and hopefully more to come. YAH!!! Kyside38

I feel sorry for people living in Utah that get sucked into their trap.

Yes, and a lot do just because most people are underpaid and housing costs are going up. You know, Robert Kiyosake (Rich Dad, Poor Dad) recently predicted that there was going to be a greater division between the rich and the poor. I especially believe we'll see this in Utah.

Oops sorry. I was sending a news story, not an advertisement. It gives an idea of how the legislation is upholding PDLs. Their reasoning is that legitimate banks, etc. could suffer. Truth is that MANY of Utah's state legislators own PDL businesses and they don't want to lose their bread and butter. I think that we might actually have more luck at the federal level. The more states that find PDLs illegal will influence legislature at the national level. Hopefully, legislation like that would "influence" states like Utah to fall into line with federal law.

Debt Fairy,
That is indeed unfortunate for you and other residents of Utah. But I will say what I always say: it's a fact of life that politicians want, need and crave votes--and what we need to do as responsible citizens is tell our local politicians that they will not get them unless they do the right thing and vote against any bills like this that makes it easier for PDL's to do business.
Once your local reps see that this is what they need to do to keep their seats, watch how fast they will get religion and vote against these bills!

I agree and I think I'll contact the lady who is campaigning against them. I think I'll start by letting her know that this forum is here. She would be a great contributor. Also, she could refer the people she encounters who are being devasatated by PDL loans about the forum so some sort of PAC could be created. This forum and the others in debtconsolidationcare.com have given me a wealth of information and resources I wish I'd had earlier. Can't do anything about the stuff in the past, but I at least know how to handle the present and future.

I'll keep you on how things work out in my efforts. Gads, this is bringing out the political activist in me. Haven't done that in a few years. Remind me sometime to tell you about how I became a spokesman for the poor when I was homeless and participated with a local group in taking over the lawns at the state capitol and set up a tent city there.

Now that's what I call starting 2007 out in a positive way!! Go Debt Fairy!! :D And remember, 2008 is only a year away!!

Thanks for the support. :D :D :D

Payday lending has been illegal in NC since 2001, some storefront companyies were still lending as late as 2005. They were officially shown the door is April of 2005. The state is now taking on internet lenders.

I wonder if we could get legislators in other states to correspond with legislators in Utah. Think it would be worth a try? I'd need some help finding the legislators from each state who were the most effective in getting the legislation pushed through in their state. I would need help on researching that. Anyone want to help?

BDouble, NC is great and so is WV. At least they are enforcing the laws against these predators. KYSIDE38

In June 2007 the laws change in Oregon setting much tougher limits on interest and making it way harder to get a PDL.

Where can I find information about the new laws? I would like to read about it since I am in Ohio.

Google for Ohio legislation, 2007 and see if that helps.

Hey everyone ... started doing some research on what's going on in Utah. Right now there are two advocates against payday loans and one of them is the president of a debt consolidation company recommended by this site.

I think the legislators in Utah have missed the mark. The reason payday loans do well here is because all the legislation attempts to do is to cap interest rates. Larger financial institutions are fighting that because capping the rates could affect banking and mortgage institutions. The solution isn't to cap interest rates, it's to strengthen the usery law to define what interest rate above the prime level is considered usery. The federal government has capped payday loans to the military at 36% (double the amount of most prime rates), which is high, but not as high as 500% or 1000%. I think that if interest rates were to be capped at double the prime rate, anything above that would be considered usery.

Feedback anyone?

I wish that we had some kind of laws like that in Louisiana and those that affect the military. I am sick of our troops getting into debt because of these things.

Alex, There was a payday loan passed that is for the military. It takes effect this year. I agree its especially hard on them. They already give so much. KYSIDE38

with the credit card companies penalizing even good customers how can you hope to run out one of the few sources people with bad credit can use....i would guess you have unfettered access to some source of money? most of us need something to fall back on and a savings plan these days is easier said than done. it is my choice who I borrow from......