Dear Economic Fairness Supporters,
This week on the economic fairness front:
1. Profits up for nation’s largest payday lenders
2. Oregon’s unbanked: paying more, getting less
3. “Dan Rather Reports” interviews Oregon payday loan reform advocate
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October 27th
October 19th
October 13th
October 6th
September 28th
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1. Profits are up for nation’s largest payday lenders. Third quarter earnings reports show continued revenue growth for payday lenders. Advance America, the largest payday lender with over 2,700 stores in 36 states, reported an 8.9 percent jump in profits over the same 9 month period in 2005. Profits reached a staggering $137 million. PR Newswire, Oct. 25th
A report on company earnings outlines how the industry is changing their product in the face of “legislative hurdles.” For example, in Pennsylvania, the company’s new product is a personal line of credit. Borrowers pay a monthly participation fee equivalent to $15 per $100 borrowed. These new products, which enable them to get around state payday lending regulations, are pushing profits back to pre-regulation level.
Another industry giant, Cash America, reported a 35 percent increase in net income. Yahoo! News, Oct. 30th.
2. A majority of Oregon emergency food box recipients are unbanked. According to the 2006 Oregon Food Bank Hunger Factors Survey, 53 percent of emergency food box recipients are unbanked. For unbanked households, cashing checks and paying bill means high fees and less security. Nationally, 180 million checks worth $55 million a year are cashed at retail check cashing outlets cash. Over a working lifetime, the value of fees an unbanked family will spend on basic transactions equals as much as $17,000.
Next session, Oregon Food Bank Network of Regional Food Banks will join the Economic Fairness Coalition in support of a cap on check cashing fees. By joining the majority of states that set reasonable limits on check cashing fees, we can help put money back into the pockets of hardworking Oregonians. Read the Oregon Food Bank Report, “Profiles of Poverty and Hunger in Oregon.”
3. Oregon advocate, Mary Ann Olson, interviewed for Dan Rather Reports. The new cable TV News program, “Dan Rather Reports” debuts this month. On November 21st, the program will feature a story on payday lending. The story will look at the influential financial services lobby and the impact predatory lending has had on regular people like Mary Ann Olson.
Stand up for economic fairness for all Oregon families. Add your voice to the Economic Fairness Coalition.
1.) Spread the word. Forward this message to friends, colleagues or your membership list. Tell them to visit the web site to sign up and get more info. www.paydayloanfairness.org
2.) Learn more. Invite a speaker to come talk to your group about the Economic Fairness Coalition. Call Angela Martin at 503-239-8029.
3.) Help close the payday loan loophole. Make a contribution to fund the Economic Fairness Campaign. Learn more.
Payday Loan Fairness: [x] Yes, [] No
©2006 Our Oregon. All rights reserved. Photos by Leah Nash.