Archives

CasinosRaleigh’s News & Observer reports this morning that the Catawba Indian tribe has filed papers designed to jumpstart efforts to build a new gambling casino in Cleveland County.

As noted here previously, this would be an unmitigated disaster – especially for the thousands of people from whom casino corporations would extract millions upon millions of dollars. The mere fact that the casino would be gussied up via an affiliation with a Native American tribe is ultimately of no value in alleviateing this situtation.

The good folks at the national group Stop Predatory Gambling  put it this way is a special and informative web page devoted to the dangers of Native American casinos: Read More

At a time of historically low interest rates, state lawmakers gave final approval last night to legislation that ramps up the cost of consumer finance loans.

Meanwhile, consumer advocates are calling on Governor McCrory — who once made his oppostion to predatory “payday” loans a major plank in a mayoral reelection campaign in Charlotte  – to veto the legislation. This was released earlier today:

AARP Calls on Governor to Reject Rate Hike for Consumer Loans, Senate Bill 489 Senate Bill 489 will increase rates and fees on consumer finance loans 

RALEIGH –  On Monday night the Senate voted to concur with the House’s amendments to Senate Bill 489.  The bill now goes to the Governor’s office for his consideration.

“We are calling on the Governor to reject Senate Bill 489,” said AARP NC Director Doug Dickerson. “This legislation is going to hurt seniors and other consumers that use these loans by increasing interest rates and adding new fees.” Read More

3-4-13-NCPW-CARTOONTomorrow the North Carolina House Banking Committee will hear proposed legislation (already passed by the Senate) to jack up rates on already exorbitantly priced installment loans.

And in case you had any doubts as to what the proposal (and others like it) are at least partially about, check out this news story from earlier today over at Bloomberg News:

Payday Lenders Evading Rules Pivot to Installment Loans

For three years, payday lenders have been bracing for dedicated scrutiny from a U.S. agency for the first time. One way they’re getting ready: switching to loans designed to fall outside the regulator’s grasp.

Companies including Cash America International Inc. (CSH) and Advance America Cash Advance Centers Inc. (AEA) are increasingly selling longer-term installment loans to avoid rules the Consumer Financial Protection Bureau may impose on their shorter-term products.

Read the entire article by clicking here.

Loan sharksThere’s a common perception in the General Assembly these days that storefront consumer finance shops are not as bad a payday lenders. Indeed, this has been a common explanation offered by members of the Senate as they advanced legislation in recent weeks that will jack up the interest rates on consumer finance loans. 

If this is true, however, the difference between the two predators is just a matter of degrees, not basic characteristics. If payday lenders  are the great white shark of small loan predators, then finance companies are the tiger sharks. This truth is made clear in a new and powerful article from the muckrakers at the national news website, Pro Publica entitled “The 182 Percent Loan: How Installment Lenders Put Borrowers in a World of Hurt.” Read More

Mel WattThis just in from the good folks at the Center for Responsible Lending:

NC’s Rep. Mel Watt receives early and bipartisan support to head FHFA
Agency oversees financial enterprises with $6.7 trillion in assets

By Charlene Crowell

President Obama recently nominated Melvin (Mel) Watt, a long-time North Carolina Congressman, to direct the operations of the Federal Housing Finance Agency (FHFA). While major news media reported on the development, few mentioned exactly what the new job would entail or the significance of an African-American potentially leading a key financial office.   Read More