So ex-president Bill Clinton, “also called on more governors to follow the lead of California Gov. Arnold Schwarzenegger (R) and former Arkansas Gov. Mike Huckabee (R) and reduce childhood obesity by bringing healthier lunches and more exercise to schools. He also urged states to go after pay-day lending operations, whose short-term, high-interest loans hit the poor the hardest, he said. Clinton said there are more check-cashing and payday lending operations in the United States than all the McDonalds and Starbucks worldwide”. http://www.stateline.org/live/details/story?contentId=325309
A little research and we discover Starbucks had 15,012 stores in 44 countries http://en.wikipedia.org/wiki/Starbucks .
And McDonald’s operates over 31,000 restaurants worldwide, employing more than 1.5 million people. http://www.mcdonalds.ca/en/aboutus/faq.aspx
It took about 15 seconds to get the facts!
Even the most optimistic payday loan protectionists estimates there are no more than 22,000. And with recent events in Arkansas, Ohio, Oregon, and NH we are certain there are less.
One more strike against letting the consumer decide!
Come on, John!
Read “Why Banks & Credit Unions Hate Payday Loans”
All you’re doing in Ohio is driving consumers to bouncing checks, buying overdraft protection, check kiting, or failing to make a credit card payment on time.
Again, 60% of credit union NET INCOME and 18% of bank NET INCOME is derived from overdraft (NSF) fees. Take away payday loans and consumers have one less CHOICE!
Just 3 points from the Post:
The article quotes noted economist Donald Morgan:
“Who then benefits from payday loan bans? Credit unions, for one, notes
Morgan. He says interest rates on overdrafts charged by credit unions and
banks can exceed 2,000 percent, dwarfing the high interest rates on payday loans. Credit unions, he adds, have been especially hurt by payday lenders cutting into their overdraft fees.”
Additionally, a study by Morgan and Strain’s evaluated how households fared in Georgia and North Carolina after payday loans were prohibited:
“Compared to households in states where payday lending is permitted, households in Georgia have bounced more checks, complained more to the Federal Trade Commission about lenders and debt collectors, and filed for Chapter 7 bankruptcy protection at a higher rate. North Carolina households have fared about the same. This negative correlation- reduced payday credit supply, increased credit problems- contradicts the debt trap critique of payday lending, but is consistent with the hypothesis that payday credit is preferable to substitutes such as the bounced check “protection” sold by credit unions and banks or loans from pawn shops.”
Sheila Bair, the current chairman of the board of directors of the Federal
Deposit Insurance Corporation (FDIC), during a 2005 speech, stated “the
‘enormous’ fees earned on these programs discourage credit unions and banks from offering payday loans. Since they reap such enormous revenue from overdraft protection and bounced check fees, credit unions and banks have a vested financial interest in limiting consumer options and having payday loans removed from the marketplace.” She warned that customers were “catching on” and turning to payday loans for their “cheaper product.”
John, why doesn’t it make sense to let the people decide what is in their best interests? Why must we baby-sit everyone?
So, Bill might have been about 24,000 off. I think his point remains the same, however, regardless of whether or not the correct number is 22,000 or 46,000. In Ohio, there are in fact, more payday lenders than several of the fast food restaurants. This denotes a problem. We should be concerned about the fact that there are so many payday lending outlets in our state. Regular depository institutions should be providing products to Ohio’s consumers that are cheaper than 391% APR. Payday lenders serve up debt on a silver platter to Ohio’s consumers and its good that the state’s lawmakers have finally decided to put some reasonable limitations on the interest rates of payday loans and on the number a customer can take every year. House Bill 545 will help many of Ohio’s debt ridden families get back on their feet and above water.