Payday Companies Fight Back

Posted On: September 2, 2010 at 1:45 p.m.

Filed Under: colorado legislature payday loan

Angered and frustrated by new laws that are putting many payday loan lenders out of business, new attacks are coming from the payday loan industry that claim the laws as unfair and even ridiculous. Reports are coming in from all over the country where this argument is taking place. One coming out of Colorado follows: “As states continue to crack down on payday loans, the payday lending industry is attempting to make a case for itself in the media, spewing out press releases when states take action to curb the usurious loans. [[ads]] After the Colorado legislature passed a measure capping interest rates at “a mere 45 percent,” a Web site called aboutpaydayloan.com issued a press release taking issue with some of the measure’s provisions. Specifically, the site took expection to the requirement that lenders give borrowers six months to repay the loan instead of the typical two weeks. “After all, it is hard to fathom why a six-month loan would be any more helpful when you only need a little cash for a car repair, or until payday,” the press release observed” (http://www.consumeraffairs.com/news04/2010/08/payday_pr.html). A good point is made here. Why would lenders be required to give borrowers six months when that is not the intention of the loan?

Politics Involved in Payday Loan Laws (September 3) A new report has broken out that a politician’s family benefited from recent laws designed to restrict the practice of lending payday loans . This report suggests that a son-in-law of a prominent politician was the beneficiary of laws voted in by his father-in-law. Here is part of the report:

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