Watchdog Agency Hearing To Examine Payday Loans

Birmingham, Alabama - a new monitoring body for the federal government's consumer finance, the Birmingham Civil Rights Institute, a national payday loan on the fair when you are holding a public hearing of the first field discussion will come to Birmingham on Thursday.

Because of it, protection bureau consumer finance, "state, by using one of the greatest number of lenders payday per capita of the country," it said in a statement chose Alabama for hearing that.

Richard Cordray was appointed by President Barack Obama to head the agency in the appointment of controversial recess this month, it is noon Thursday to attend the hearings have been expected. Obama and illuminating light on the industry of payday lending, said immediately after the promises to be one of the first task of the code array.

Hearing, it contains the testimony from people in general and representative consumer organizations, civil society, of industry, agency, "provides the CFPB insight on the ground to the market lending payday" is said.

YOU, if you go

Protection Agency's field hearing of the U.S. consumer finance loans of payday on content:

Thursday noon: When

Birmingham Civil Rights Institute Location:

Montgomery-based policy analyst at Arise non-profit, we discussed the state of Alabama as "Wild Wild West" of payday loan industry Stephen Stetson, a public policy project. Stetson, the Birmingham City Council, this month, the agency probably Birmingham for the event to implement a moratorium on new payday lending business in the city are scheduled to participate in round table discussion that is associated with the hearing said chose.

"Salary loan in Alabama is a big problem," said Stetson said. See Also bankruptcy personnal loans . "It is a technology for the removal of wealth from low-income area basically."

In addition to checking the amount of loans made by payday loan is held, protected by using the interest, there is a short-term borrowings. Critics such as Stetson because there is a loan, that claims to be the prey of their relatively high interest rates. In Alabama, payday loans, it is possible for up to $ 500, are designed for maximum period of 31 days, to a maximum of 17.5% of interest over the term of the loan.

Its interest rate, when annualized, the amount of 456 percent, says Stetson. See Also americash loans calumet city .

"I triple digit looting," he said.

By comparison, a small state, the maximum interest rate of short-term borrowings is provided at an annual rate of 36 percent, says Stetson.

Claims that the industry of payday loan, the fee is considerably lower than what it would pay other means available to the borrower interest rate. See Also fast cash.

Aborted interest rates are usually, but equivalent to about half the charge about a third of public utility charges such as any reconnection fees and after-sales service, bank charges for overdraft loans payday, Jamie Fulmer, national Advance America spokesman for the chain of payday loan has been said.

To any one borrower from lending more than $ 500 when the bar state law, anyone lenders borrowed $ 500 from another payday loan lenders. Payday lenders, standing to benefit from the transparency, and lose, rather than in an effort to ease the terms of that loan, Fulmer says.

He said, "This is a highly regulated industry widely and". "We are, if they are not providing our customers with products they have to cherish, we must not be in business," he said.

Industry he said, would support the regulatory changes will be transparent and simpler loan. Check out also cash loans from direct lenders united kingdom.

"Birmingham, to start this discussion is a good place," he said.

Said mechanism because there is insufficient track of Stetson loan industry, the rule that the borrower of the skirt easily motivated. See Also best direct payday loans . He said in spite of regulations to prohibit multiple simultaneous payday loans to a single borrower, such as 20 in the financing of a number of excellent, and has been performed in the borrower filed for bankruptcy in Alabama.

Borrower, he said, in many cases, despite the rules that prohibit it simply, each taken out a loan, you can walk from another payday lender.

"They can sink their teeth into these people, you can not let go," he said. Check out also 300 short term installment loan .

Thursday's hearing carries little political baggage with it. Rep. Spencer Bacchus, R-Vestavia Hills, Senator Richard Shelby, the R-Ala, in opposition to the appointment of example code for both the top spot in the new monitoring agency. Bacchus is said will probably be challenged in court.

Alabama law, regardless of payday loans

The minimum loan period is 10 days can have a maximum period of 31 days.

The maximum amount can be borrowed is $ 500.

Lender, you will need to determine that the borrower does not have is an excellent and other lenders more than $ 500.

Interest of 17.5% will be able to charge a maximum loan period of time.

Borrower, you can at an additional cost, to roll back the loan over an hour. Check out also alaska payday loans .

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