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More on the attempt to bring back payday lending to NC

As reported on the main NC Policy Watch site last week (It’s baaaack: Troubled Alabama bank tries to sneak payday lending back into North Carolina) at least one bank (Regions Bank out of Alabama) is trying to bring payday lending back into North Carolina after state lawmakers, regulators and advocates chased the practice away more than a decade ago.  

Mark Binker over at WRAL had more on the story over the holiday weekend, including the fact that a much larger and more respectable  institution, SunTrust Bank, may be considering doing its own shark impression as well. Let’s hope that SunTrust and others come to their senses and realize that payday lending is bad news for the state’s consumers and bank reputations.    

 

2 Comments

  1. Clark Reilly

    September 4, 2012 at 7:52 pm

    Dear Rob:

    I think it’s interesting the way you criticize payday lenders, yet you don’t seem to be aware of a comprehensive study from 2008 that shows North Carolinians are worse off without payday loans.

    http://www.newyorkfed.org/research/staff_reports/sr309.html

    I wonder if you have the intellectual honesty to address the study’s findings in detail. Whenever I bring this and other studies to the attention of payday opponents, they have this curious response of claiming they are “too busy”, or “the study is invalid” without explaining why, or saying “you obviously have your mind made up”. I’ve always regarded these as dodges for obvious reasons. If you have the time to make a blog post, why don’t you have the time to address valid criticisms of your position?

    For once — just for once — I’d really like to see an opponent like yourself step up to the plate and defend your position against evidence that pretty much contradicts your entire argument.

    http://www.bloggernews.net/128488

    Thank you for your kind consideration.

    Clark

  2. Rob Schofield

    September 5, 2012 at 8:15 am

    And for once, just once, I’d love to see a paid industry flak who posts on our site in defense of payday loans who admits who they are and acknowledges his or her personal financial interest in defending the practice.