Dear Economic Fairness Supporters,
This week on the economic fairness front:
1. Credit unions stand up in support of 36% cap on payday loans
2. America’s troops vs. payday lenders: What flag is your member of Congress waving?
3. The road to bankruptcy now runs past a payday loan shop
View other alerts.
_______________________________
1. National Association of Federal Credit Unions endorse 36% cap
Lobbyists from the financial industry weighed in on both sides of the proposal to cap loans to military personnel. Needless to say, lobbyists for the payday loan industry are staunch opponents to the legislation now under consideration in Congress that would cap loans to military members at 36 percent. On the other side, speaking in favor of the 36 percent cap, are federal credit unions. Federal credit unions are limited to an 18 percent interest rate cap on all loans.
"Although 36 percent is still high, it is a good first step in addressing the issue of payday lenders that prey on the men and women in uniform that so bravely serve to protect our country," said Fred Becker, president and chief executive officer of the National Association of Federal Credit Unions and a retired Navy captain. Reuters, Sept 14
2. Pentagon backs 36% cap on payday loans
USA Today, Sept 14 - Congress should cap payday loans to military personnel at 36% "to prevent any lenders from imposing usurious rates," a Pentagon official testified today. David Chu, undersecretary of Defense for personnel and readiness, said that although such a cap is "a high number" it wouldn’t eliminate a useful source of credit for service members, the AP reports.
3. Debt from high-cost lenders is appearing on more bankruptcy filings
For most families, bankruptcy marks the end of a long struggle to stay afloat. Credit cards have been maxed out and the equity has been stripped from the home, all in an effort to keep the bills paid. Now experts are seeing an increase in the number of bankruptcy records listing multiple outstanding loans to high-interest payday lenders. “New wrinkle in easy credit leads to ever-higher rates”, Sept. 10, 2006.
We have to ask our selves how we arrived at a point where purchasing groceries at 500 percent interest is sold as a service and more families are falling off the financial cliff thanks to mounting payday loans?
Stand up for economic fairness for all Oregon families. Add your voice to the Economic Fairness Coalition.
Payday Loan Fairness: [x] Yes, [] No
©2006 Our Oregon. All rights reserved. Photos by Leah Nash.