By Antonio D. French
Filed Tuesday, September 18, 2007 at 6:35 PM
Attorney General Jay Nixon gathered with a group of local Democratic elected officials today to call for the Republican-controlled state senate to act to regulate the state's Pay Day Loan industry.
Joining Nixon were State Senators Rita Days (who Nixon praised for leading the charge against astronomical-interest lenders) and Jeff Smith, State Representatives Talibdin El-Amin, Robin Wright Jones, Jamilah Nasheed, and Juanita Head Walton, and Committeeman Joe Palm.
Attorney General Nixon...
Senator Days...
Labels: Attorney_General
3 Comments:
They are right. The sky high fees and interest charged by those places just makes the poor poorer. They do not help those out that need the money right away. Sure, the person might be able to get their car fixed or pay off a credit card debt that is about to go to court or for whatever thousand reasons there might be, but they will in the long run, just get poorer and poorer.
9/18/2007 11:45 PM
Responsible payday lenders have helped millions of Missouri families make ends meet when facing unexpected expenses such as auto repairs, medical expenses or unusually exorbitant bills. The reality is that Missouri’s payday lending laws ALREADY include some of the strongest consumer protections in the country, including limits on loan amounts, fees and rollovers.
Recent, independent studies show that:
• By extending credit where there would otherwise be none – payday loans are not predatory but instead actually HELP the households they serve.*
• Further regulation of payday lending has the adverse and unintended consequence of reducing credit options for those who may have few alternatives.**
• Policymakers should encourage competition in the small loan market, as competition controls prices.**
* “Defining and Detecting Predatory Lending,” by Federal Reserve Bank of New York Research Officer Donald P. Morgan, located at: http://www.newyorkfed.org/research/staff_reports/sr273.pdf
** “Payday Lending and Public Policy: What Elected Officials Should Know,” by Tom Lehman, Ph.D., adjunct scholar of the Indiana Policy Review Foundation and professor of economics at Indiana Wesleyan University, located at: http://www.inpolicy.org/index.php?option=com_content&task=view&id=211&Itemid=26
From the April 2 Wall Street Journal:
• “…crackdowns on payday lending) looks like another illustration of how to hurt working Americans in the name of helping them.”
• “Payday loans offer a valuable service to moderate income workers.”
• “Payday loans are cheaper than most alternatives for those facing short-term financial distress.”
• The effect of a ban on payday lending in Georgia “has been to increase consumer credit costs and inconvenience for Georgia consumers.”
• “Banning payday loans might please competing banks, credit unions and so-called consumer advocates, but it’s hard to see how actual consumers would benefit.”
9/19/2007 1:49 PM
Spoken like a true Payday Loan PREDATOR!
When you get done talking payday loans are hurting poor people in the gotdamn interest is too high.
Whoever wrote this should allow me to secure a personal payday loan from him/her!
9/19/2007 3:42 PM
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