Interfaith Progress Against Poverty
Our friends at the Virginia Interfaith Center for Public Policy are making progress in their fight against predatory lending practices in Virginia. Here's an update I received, this week, from Ann Rasmussen, VICPP’s Policy Director:
Despite strong opposition from the payday lending industry...a bill was passed with strong reform measures that we believe will help break the cycle of debt caused by payday lending. Central to this proposal are 1) a limit of one loan at a time industry-wide (so people can't hop from lender to lender taking out numerous loans), 2) a limit of 5 loans a year, and 3) a longer loan term that is two times the pay cycle of the borrower. This compromise reform is not as simple and easy as a straight 36% cap, but the measures are real reform that protect against the current lending practice of encouraging repeat borrowing that traps people into debt.
This bill could offer real, positive change if passed by the legislature. Calling all FPL readers in Virginia - now is the time to join VICPP's Faithful Pledge Campaign!
Comments
With regards to this, I don’t think that payday lending is the cause of poverty growing. Crisis didn’t start when payday loans came out, ever since, before No Fax Payday Loans came out poverty exploded already, so I really don’t think that it is the cause of scarcity.
But then, I agree with the proposal. It is helpful as well to the consumers. There must be a limitation of loans in order to protect them from borrowing repeatedly and to avoid getting into debt. I’m not against with this but I think payday loans shouldn’t be blamed about poverty. http://personalmoneystore.com/moneyblog/
Posted by: No Fax Payday Loans-David | September 3, 2008 05:51 AM
Because of financial crisis the demand for payday loan is increasing that’s why this industry is fast growing today. Nowadays predatory lending is also very prominent and because of this some says that payday loan is a bad solution for our financial problem and the reason of our being poor. It’s a good thing that the authority has done something to protect the consumer but lets admit that in times we badly needed money payday loan is the one who had helped us at that time. I think if we are going to ban payday loans the ordinary people will now going to have a very hard way of living. What if an unexpected situation come wherein it concern most of money what are you going to do? I think it’s a matter of making a right decision in choosing payday loan company. There are articles on this site that would probably guide every one when it comes on having loans: http://personalmoneystore.com/moneyblog/. It also tackles about the disadvantages if we are going to ban payday loans.
Posted by: No Fax Payday Loans | September 4, 2008 02:23 AM