close liqour stores and stop selling cigarettes everything is bad including preachers who get 20% tithe whats the apr on that ?

Ever take economics in school? A 36% cap would eliminate ALL sources of credit for "unbankworthy" borrowers, including consumer finance offices. In a business with a very small profit margin, a cap of 36% would make it impossible to keep the doors open. Banks and credit unions have no interest in small loans to individuals with marginal credit (in spite of what they say). Guess there's always the internet, where payay lenders can charge whatever they want. Can we stop with government becoming our nanny? PLEASE?

Another option would be for the opposition to lend the much needed money to consumers if the 36% cap passes. Interest rates are not 400% but 400 ANNUAL PERCENTAGE YIELD. This means that an individual would have to take out a payday loan every payday, non-stop for an entire year! That's the ridiculous scenario in which the APR would actually be valid. In addition, any payday lender that is a part of the industry's trade association HAS to give all of their customers an option to pay their loan off interest free if they're having difficultly. There are ways to "shop" for a suitable payday loan just like any other product.

The Center for Responsible Lending, a front group that rails against payday lending, is among those set to benefit greatly if payday lending is restricted or banned. CRL is the creation of the Self-Help Credit Union.

The accusation that the average customer pays $793 for a $325 loan is absolutely wrong. To come up with that number, CRL counts the principal for only one loan but adds the fees for nine loans- an impossible scenario. In fact, Veritec Solutions LLC, the regulatory services company which supplied CRL with the data has publicly said that CRL misinterpreted the data they were given to come to flawed conclusions.

Payday advances are two week, not annual loans. For each $100 advanced, customers pay a typical fee of $15-$17. Because payday loans are two-week loans they cannot be offered at the same annual rates as annual credit products such as credit cards, auto loans and home mortgages. The only way to reach the much-hyped triple digit APR is to take out one advance and continue to renew the same advance every two weeks for an entire year. State laws and industry best practices do not allow this to happen.

At a 36% APR, the total fee charged on a $100, two-week advance would be $1.38. Payday advance lenders could not cover the cost of originating a loan, let alone meeting employee payroll and benefits and other fixed business expenses.

I think we should include government late fees on taxes, and general fines. If the government is going to legislate what interest charges businesses charge then it should also apply to the governmet. It can't be both ways where the government makes big money or fines and then tries to legislate what the private sector charges. I believe this bill also will include the pawn brokers (who don't report to credit agencies) and the t.v. furniture rentals. Socialism has a bad track record over history.

I might want to add that U.S. Bank in Ohio where I live only charges 10% per month and they take it out of direct deposit on your check. Oh !competition made some of the rates go down without government regulations.

Pawn Shops loans on items (pledges) left as security for the loan. The borrower is not obligated to pick up the loan (pledge). Pawn Shops do not report to credit agencies. Credit card companies and payday loans are different institutions. All these loans are small loans and deserve a higher interest rate. If we put these payday loan places out of business, and the pawn shops people may not have that safety valve they need. Now if the government thinks they can do the job better, then the government should open pawn shops and payday loans and give the people 36% annual percentage rate, and GOOD LUCK COLLECTING THE MONEY.

To add to my other posts I might add that I think it is only fair that consumers have a right that when they make payments that the consumers should be able to pay down the principal, and that is kind of hard to do with payday loans, and credit card companies (with all their fees). At least with pawn shops the consumer is not an indentured slave ,because the consumer can simply default by leaving their property with no report to a credit agency. The consumer probably intended to sell their item. A viable economic atmosphere should allow the consumer to pay down principal. It really is the payday loan companies, and credit card companies activities making life difficult for pawnbrokers the oldest form of banking.

I don't understand what consumers are going to do when these loans are wiped out. While it might sound like a great idea to limit the rates or even restrict payday loans, they do help a large number of people. By taking these loans away from people it seriously limits the number of options that consumers have. Who has an answer for these people? They will be left with practically nothing after this goes through all across the country.

To Whom It May Concern:
Your support of the 36% cap on consumer loan while well intended and surely needed to protect consumers against predatory lenders, is going to have a consequence that nobody realizes. Pawnshops will have to close because they make short term loans, (4 months in California) and a 36% cap would mean for every $100 loaned we would make $2.80 and if the person came back in 5 days they would owe $.50 cents. Our tickets to write the loans are $2.00, and then we have employees, rent, utilities, security, and many many taxes. Our customers are not Payday customers, to get a Payday loan you have to have a checking account, our customers have no checking accounts, and we are their banks. Our average loan is $80 for which we make $10 for 4 months. The Payday loans are $300 and they get $45.00 every 2 weeks. As you can see we are not predatory lenders. I have 6000 customers, and I am a small store. They will have no place to go.
Licensed and regulated Pawnbrokers who offer consumer credit secured by possessory security interest in personal goods provide safety-net pawn loans to approximately 30 million Americans. Each day, pawnbrokers help families through challenging economic times by providing non-recourse, short-term loans that have no impact on their credit history.
The pawn industry is a heavily regulative provider of consumer financial services. In addition to state licensure requirements and laws concerning the terms and conditions of pawn loans, we are subject to 12 federal laws. These federal, state, and, in some instances, local laws govern every aspect of pawn transactions including interest rates, loan duration, redemption methods, record keeping and transaction reporting requirements
I started a petition in my store and in 10 days have 2,500 signatures with comments about how they will have no place to go for money. There is a web site (Savemypawnshop.com) with 18,000 signatures. There is many times the number of people that use pawnshops that will be badly hurt by this then there will be people benefiting by such a law. I believe that Payday loans, Title loans and such should be capped but our politicians are not willing to make any exceptions to their bills. It is quite evident that no other financial services would be able to fill the void left by the disappearance of the pawn industry. If this was to happen it would mean the loss of tens of thousands of employee jobs, corresponding license and tax revenue for state and local governments and most importantly, the loss of a convenient, trusted, and vital credit option for consumers. There are no credit providers who can make an $80.00 non-recourse collateral loan at 36% interest per year. If you want to help the people who need it the most right now, help the people who depend on pawnshops to survive.
Thank You
Reed Hadley
Mission Jewelry & Loan
5138 W Mission Blvd
Ontario, CA. 91762
909-590-1399

Reed Hadley, I am also a pawn broker. I looked at the website More ... and I noticed that all the sponsors of the bills were democrats. I know many pawn brokers who vote democrat, and I hope they remember what is happening here. I heard all the comments about Bush and the republicans from pawn brokers, and I could never understand how pawn brokers could vote democrat. You are correct that the consumers are really going to be strapped without your neighborhood pawn shop. Reed it is real simple the democrats are not on the side of private industry. The democrats want larger regulatory government, and that is the difference I see. Good luck and I hope we all get through this nightmare.