Kansas City Church Group Trys To shut Down Payday Loan Stores

Friday, October 21st, 2011 at 8:57 am 
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Kansas City Payday LoansKansas City Payday Loans

Kansas City, Missouri – Communities Creating Opportunities, a large interfaith group, has decided to take on payday loans in Missouri head on. They organized a rally at Union Station in Kansas City to try and raise 90,000 signatures to stop payday loan stores from charging outrageous interest rates.

John Miller, a lawyer and a member of Platte Woods United Methodist Church, was one of the organizers.

“These are issues that cut across the state line. They cut across racial divides. They cut across all areas of our community. They are interests that we share,” said Miller.

Miller was just one of the over 1000 people who attended the two hour rally. The main focus of the rally, apart from bringing attention to the issue, was to get signatures on a petition for a Missouri ballot that would cap payday loan interest rates at 36%. At this time the interest rate is as much as 2000% when rollovers are taken into consideration.

As usual Mr Elliot Clark was in attendance and telling his story. Clark said he is a victim of Payday loans.

Clark’s wife hurt her ankle and couldn’t work; Clark had to handle the family bills all alone.  Because of bad credit, he couldn’t get a loan from a bank. “I borrowed $2,500 from Payday and ended up paying $30,000 over three years.

Apparently Mr. Clark took out a $2500 payday loan and ended up losing his home. This makes a great story for the people opposed to payday loan rates, however, payday loans are not supposed to be taken out for two years. It’s a payday loan not a second mortgage.

“Our Kansas City metro families are struggling, many people take out Payday loans just to buy groceries, pay rent or keep utilities in service,” said Reverend Thom Belote, of the Shawnee Mission Unitarian Universalist Church

Banks in St. Louis Missouri area are getting into the payday loan business

Friday, October 14th, 2011 at 11:05 pm 
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Missouri payday loansMissouri Payday Loans

In a recent news article on stltoday.com  (St. Louis Today .com) by Jim Gallagher, he describes how banks in the St. Louis Missouri area are starting to get into the short term Missouri payday loans business. Banks in the St.Louis are are now letting customers borrow smaller amounts to cover unexpected bills etc..

Missouri payday loans shops charge an APR averaging 444 percent, according to the Missouri Division of Finance, assuming two-week loans. The Center for Responsible Lending says banks charge a 365 percent APR, saying that the loans last an average of only 10 days until paychecks arrive.

While the interest rates being charges are less than regular payday loan providers, they are still quite expensive compared to a conventional loan. Other banks require you to deposit money into a savings account while paying off your loan. I’m not sure how people who needed a payday loan in the first place are supposed to pay foo their loan and put more money in a savings account at the same time.

 St. Louis Community Credit Union, for instance, gives small dollar loans for 90 days at an APR of 25 percent, plus an annual fee of $25, which covers all loans during the year. On a typical $450 loan for three months, the interest would be $28. Ten percent of each loan goes to a savings account. The idea, said CEO Patrick Adams, is that the savings account will grow as the customer keeps borrowing until they no longer need a loan.

“At that point,” he said, “you get off the treadmill.”

Read the full article here: http://www.stltoday.com/business/local/article_1d68ea2d-4312-54dd-8cee-ee6d6a86d457.html#ixzz1aoX88QDO

This just seems like a tactic to cash in on service being offered by St. Louis Missouri payday loans stores, but by charging less interest the banks hope to avoid the criticism that payday lenders face. I suppose 365% is better than 444%, just like shooting someone with a smaller caliber gun – you still shot them! On the flip side consumers need to realize that administration costs are similar for most loans, and do not change with the amount borrowed.

Payday loans hurting Missourian

Tuesday, July 6th, 2010 at 10:05 pm 
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Republican Mary Still on Payday LoansDemocratic Representative Mary Still, who is a guest columnist recently wrote an article for The Joplin Globe.
Titled: Payday loans hurting Missourian

In this article Rep. Mary Still states that she “was astonished to read in The Joplin Globe (June 27) that John Payne, of the Show-Me Institute in St. Louis, had enough advance notice of a legislative hearing on my payday loan bill that he had the opportunity to drive to Jefferson City for the hearing.

He notes he also got an opportunity to listen to Shakespeare’s “Merchant of Venice” on his drive.”

She goes on to state that “It is unfortunate that I, the sponsor of the payday loan bill, was not given any advance notice of a hearing. After being tipped off the evening of the hearing, I asked to speak but was told I could not.”

It is claimed my Rep. Still that: the acting chair of the committee is also the owner of a payday loan store, Kwik Kash, in Cabool, and he only wanted the industry to testify.

Rep. Still also states that: “Had I been allowed to speak. I would have made these points:”

* Missouri has the weakest laws in the nation, with an annual percentage rate of 1,950 percent.

* Missouri allows six rollovers. Fees are charged for each renewal resulting in financially unsophisticated borrowers falling into a spiral of debt that often results in repossession of cars and other belongings.

* Every state surrounding Missouri prevents rollovers.

* The Missouri Better Business Bureau reports that more than 90 Missouri nursing homes have payday lenders operating inside their nursing homes. No other states allow this.

Rep. Mary Still is a Democrat representing the 25th District in Missouri. She lives in Columbia.

For more information on Rep. Mary Still go to www.marystill.com