Oregonians for Payday Loan Fairness
Economic Fairness Coalition Update: August 24, 2006
Dear Economic Fairness Supporters,
This week we learned three important facts:
1. Wood Village and Bend ordinances set to go into effect
2. Top brass continue push for 36% cap on interest
3. More news on the Bi-Lo (pay high) grocery credit card
View other alerts.
Read below to get the facts on the fight for economic fairness.
____________________________________
1. Payday lenders in Wood Village and Bend must start operating under new rules
While we continue to wait for the state law to go into effect, (324 days from now but who’s counting) relief is in sight for consumers in Wood Village and Bend. That’s because local ordinance’s that both cities passed earlier this summer are due to go into effect in the next few weeks. Notices have already been mailed to payday lenders in Wood Village. Bend city officials expect to get information out to businesses very soon. The payday loan reform ordinance will help stop the debt treadmill by making it easier for consumers to pay down the principal and pay off the loan.
Thank you again to all the city council members in Wood Village and Bend who took a stand against predatory lending!
2. Top military officials continue to push for 36% cap on interest to protect service men and women from predatory payday loans
Aug 22, 2006 - This week, an ABC News report featured the story of Matthew Hubbell, a Navy Air Traffic Controller whose $500 loan quickly snowballed. The Department of Defense has named payday lending debt as one of the key quality-of-life issues affecting service members and their families. Top military officials are calling on state and federal lawmakers to establish reasonable limits such as a 36% cap on all loans to service members. Get the story.
3. Pay 500% APR for a bag of groceries? Parent company would like start offering the high-cost loans at gas stations and drug stores.
We brought you the story of Bi-Lo grocery stores and the high-interest credit card being offered to hungry, cash-strapped customers. With the card, a customer may purchase up to $200 in groceries on credit. The total due, including fees, would be automatically deducted from their checking account on their next payday. The fees are high - a $50 purchase would cost as much as $9.99 for as few as seven to 14 days. At that rate, annual interest on a $50 bag of groceries would exceed 500 percent.
Reporter Nichole Monroe Bell of the Charlotte Observer interviewed the president of Purpose Solutions, the company behind the Bi-Lo (pay-high) credit card. He shared his vision for the future: expand the short-term loan cards across the country to more retail outlets including gas stations and drug stores. Get the story.
Stand up for economic fairness. We beat back the big-money industry once, together we can do it again.
Payday Loan Fairness: [x] Yes, [] No
©2006 Our Oregon. All rights reserved. Photos by Leah Nash.