Discussion in 'VMBB General Discussion' started by rooter, Aug 30, 2013.

  1. rooter

    rooter *VMBB Senior Chief Of Staff* Supporting Member

    Jan 31, 2001
    Glendale Arizona
    The New York Times

    August 29, 2013

    Cracking Down on Predatory Payday Lenders


    The predatory industry known as payday lending is finally feeling the bite of state authorities alarmed that low-income borrowers are being gouged into long-term debt running at impossible interest rates of 500 percent and more.

    A prominent online lender that has increasingly run into state challenges — Western Sky Financial, owned by a tribal member of the Cheyenne River Sioux — has just announced that it will stop financing loans next month. Fifteen states have banned usurious payday lending to protect workers from the servitude of compound interest fees worthy of loan sharks. In reaction, lenders are now looking for other ways to ply their abusive trade — by conducting business offshore via the Internet or through ties with American Indian groups invoking their sovereign nation status.

    Western Sky Financial’s retreat is a significant step forward in the government crackdown on payday lending. The company faces usury law challenges in five states, most recently in New York where Attorney General Eric Schneiderman filed suit this month charging the company with levying interest rates of more than 300 percent in violation of state law that caps interest at 25 percent. New York authorities have ordered 34 other online and American Indian lenders to stop providing online payday loans in the state, prompting American Indian groups to begin lawsuits in the name of their sovereignty.

    Complaints of abuses by Western Sky Financial are being pressed by authorities in Colorado, Maryland, Minnesota and Oregon as officials focus on lenders’ increasing resort to the Internet. “The driver is technology,” Mark Kaufman, Maryland’s commissioner of financial regulation, told The Washington Post, citing the lenders’ speed and furtiveness in online lending.

    Payday lenders gull people into supposedly short-term borrowing until their next payday under terms that turn out to balloon the obligation into unsustainable long-term debt under a crescendo of interest costs. Millions of borrowers have become entrapped in situations where a supposed two-week loan rolls forward for an average of five months, according to research.

    Tighter regulation by more states is obviously needed along with new federal protections to stop lenders from raiding borrowers’ bank accounts. One encouraging sign from the Consumer Financial Protection Bureau was a report on payday lending this year that expressed concern that borrowers averaged 10 payday loans a year and paid $458 in fees. Firm standards and controls can rein in the abuses of payday lending.
  2. jedwil

    jedwil Well-Known Member Supporting Member

    Sep 11, 2009
    Texas Hill Country
    Can't regulate stupid.

  3. Petergunn

    Petergunn Member

    Jan 17, 2011
    ohio's northcoast
    I've seen the Western Sky commercial and she states the payment amount and schedule so I don't see a problem, you know ahead of time you're being scalped.
  4. jedwil

    jedwil Well-Known Member Supporting Member

    Sep 11, 2009
    Texas Hill Country
    I should have stated you can't regulate "for" stupid.
  5. carver

    carver Moderator Supporting Member

    Now just how do you suppose they will collect if you don't pay the money back? Send out a war party?:D
  6. rooter

    rooter *VMBB Senior Chief Of Staff* Supporting Member

    Jan 31, 2001
    Glendale Arizona
    That is a fine looking specimen of woman hood to have come collecting...Maybe she'd bring some Indian Fry Bread...anyone not know what Fry Bread've missed a fine sound...the sound of your arteries clogging as you chomp every greasy morsel!!!! Chief
  7. dbcooper

    dbcooper Well-Known Member

    they learned to make fry bread with the flour and lard the Army gave them
  8. jedwil

    jedwil Well-Known Member Supporting Member

    Sep 11, 2009
    Texas Hill Country
    Some have learned how to make a lot of money.
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