Dear Economic Fairness Supporters,
Lots of news to report after the long holiday weekend:
1. Payday lenders reinvent themselves through loophole
2. Car title loans: trading the family car for rent
3. Senator Edwards in Oregon
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1. Payday lenders follow through on their promise to evade state law capping interest. Even before Governor Kulongoski signed the Payday Loan Reform Act we knew that the new law was in jeopardy. We knew this because that’s exactly what they promised in state testimony and what had happened in other states.
Now we have more details thanks to a story by Oregonian reporter Bill Graves "Payday lenders look for ways around cap" The Oregonian July 2, 2006. Already, sixty-six payday lending stores hold a conventional lending license and ten more stores are waiting for approval. With this license, and a small adjustment in how they package the loan, lenders will be able to keep charging rates that exceed 300 percent annual interest.
That’s why consumer advocates, unions, faith based and social service leaders are continuing to work together to end usury in Oregon. Hard-pressed working families deserve basic economic fairness every time they take out a loan or cash their paycheck.
2. Car title lenders and unregulated check cashers dig into the pocket books of cash-strapped Oregonians
For car title lenders and check cashers, the cost of doing business in Oregon is largely unregulated. As a result, thousands of Oregonians pay sky high fees for loans secured by their car, putting their vehicle at risk of being repossessed. Oregonian reporter Bill Graves tells the story of several people who were driven further into debt by car title loans. "High title loan costs unchecked" The Oregonian July 2, 2006.
3. Edwards puts focus on ending poverty
John Edwards was in Portland last week to give the key note speech at a national conference of black female legislators. He used the opportunity to call on political and community leaders to join him in a national effort to end poverty and listed regulation of payday loans as one clear step policy makers should take to address the growing economic divide.
The evening before he was the guest of honor at a backyard gathering in SW Portland. As we gathered around to hear what the former vice presidential candidate had to say, a similar theme came through loud and clear – we must find a way to talk about poverty. His travels across the country and conversations with thousands of Americans have convinced him that people are ready for an honest conversation about the economic struggle to get and stay ahead.
We agree. Get the story - Statesman Journal July 1, 2006
Payday Loan Fairness: [x] Yes, [] No
©2006 Our Oregon. All rights reserved. Photos by Leah Nash.