Payday Loan History
by admin
The June 16 letter critical of Del. Glenn Oder, saying he “has finally addressed the issue” of payday lender abuses, really misses the mark. HB940 passed in 2002 on a bipartisan vote of 73 to 27 and was signed by a Democratic governor. I know; I was the patron of that bill.
I sponsored it reluctantly and then only after a year of study and another year waiting for federal regulators to curb unsavory practices of out-of-state banks “renting” charters to storefront operations in Virginia. These lenders charged as much as $20 per $100 borrowed, allowed unlimited rollovers (renewing each payday and requiring another advance payment), so that borrowers unable to repay the loans found themselves in financial trouble. Virginia’s Bureau of Financial Institutions has no jurisdiction over federally chartered institutions, and the federal government continued to be unresponsive.
An alternative was to establish a state-regulated system with lower rates ($15 per $100), limit each loan to $500 and prohibit rollovers. It took only a year of unimagined proliferation to realize what a colossal mistake it had been. Legalization gave the industry the license, the “respectability” it wanted. The flood gates were opened.
During the next five years I attempted repeal, Del. Oder attempted repeal, and many legislators tried diligently to reverse this misguided policy with its unintended results.
Del. Oder deserves full credit for his unflagging determination to gain approval of a formula that, while payday lending continues, it no longer attracts the prurient and disreputable interests that caused so much injury to an unsuspecting public. Because of his legislation, 35 percent of the payday businesses in Virginia have turned in their licenses and more are expected to leave the state by year’s end.
Appropriately, Del. Oder was recognized by the Virginia Interfaith Center in 2008 for his work to pass significant regulatory reform to break the cycle of debt created by payday lenders.
Harvey B. Morgan
Virginia House of Delegates
Middlesex
Copyright © 2009, Newport News, Va., Daily Press
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No Fax Payday Loans Becoming More Accessible
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GAINESVILLE, FL, June 21, 2009 /24-7PressRelease/ — In such hard economic times as these, many homeowners and families who are forced to rent are in desperate need of financial help. While television money gurus and professionals steer people away from them, no fax payday loans may end up being the difference between a home being foreclosed and the payment being made on time.
“You can’t just expect people who have been making payments on a home for 10 to 15 years to just give up on it because times are bad,” says George Archer, Public Relations Manager for JTVCashadvance.com. “They were unexpectedly cut from a job they’ve been at for 20 years or they’ve suddenly found themselves on a fixed income… when none of your family and friends have extra money to lend and when the banks won’t touch you, who else is going to take the risk?”
Archer may be right. As home foreclosures continue to be at record highs in the United States and 1.6 million vehicles were repossessed in 2008, many are finding themselves stuck between getting a payday loan or losing their only vehicle, their only place to live, or worse, simply being able to eat.
“I don’t think these politicians in Washington lobbying against the payday loan industry understand what’s going on down here…” says Robin of New Johnsonville, TN. “When everyone you know is scraping by as barely as you are, what are you supposed to do when the only car you have will be repoed next week? Lose car, lose job. They can’t relate to that kind of desperation.”
Even borrowers with good credit are having a hard time making end’s meet and have found themselves resorting to cash advances to pull through this tough time. They also tend to find themselves embarassed, believing that only those who have overextended themselves have to resort to a payday loan store, but they couldn’t be more wrong.
“The money you need is available through our program, which has a higher approval rate than others,” says Archer. “We make sure your information gets to the correct lender; if you only have a savings account, your application will be submitted to a lender who offers loans for those with only savings accounts. We try to make sure that you get the quickest approval possible.”
No Fax Payday Loans JTVcashadvance is a leading website in the no fax payday loans field and you can visit their website at http://www.jtvcashadvance.com .
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