Payday Loans Crackdown


AGRESSIVE STEP TO CRACK DOWN ON SHORT-TERM PAY DAY LOANS. THE FEDERAL CONSUMER PROTECTION AGENCY IS TRYING TO DO AWAY WITH PAYDAY DEBT TRAPS. THESE ARE LOANS THAT HAVE MORE THAN 400 PERCENT INTEREST RATES. ITS A MOVE COMING DOWN DIRECTLY FROM PRESIDENT BARACK OBAMA. VALLEY NEWS TEAM’S NICOLE CRIME AND SAFETY REPORTER NICOLE JOHNSON SHOWS US HOW THE PROPOSED RULES COULD AFFECT THE VALLEY. NAT MILLIONS OF PEOPLE A YEAR NEED CASH BEFORE PAY DAY, AND USE A SERVICE LIKE THIS THAT ALLOWS THEM TO GET IT. MANY TIMES IT COMES AT A HIGH COST AND SOME SAY PEOPLE ARE BEING RIPPED OFF. “GETTING RID OF THAT “LOAN SHARKING” AND MAKING SURE CONSUMERS AREN’T GETTING TAKEN ADVANTAGE OF.” DEB MATHERN– PRESIDENT OF FARGO PUBLIC SCHOOLS CREDIT UNION SAYS NORTH DAKOTA HAS CRACKED DOWN ON PAYDAY LOAN OPERATIONS. BUT, SHE SAYS MORE RESRICTIONS WOULD BE GOOD FOR THE COMMUNITY…. “I THINK IT’S A GOOD THING TO BE EXAMINED MORE OFTEN, AND TO MAKE SURE, THERE USED TO BE NO BOOK KEEPING RESRICTIONS, THEY DIDN’T EVEN HAVE TO KEEP ANY BOOKS, AND IT’S LIKE WOW, OUR EXAMS ARE ANNUAL.” WE TALKED TO OVER HALF A DOZEN LOCAL BUSINESSES THAT OFFER PAYDAY LOANS. THEY DIDN’T WANT TO TALK ON CAMERA. BUT A FEW TOLD US, RULES SHOULD BE STATE BY STATE, AND FEDERAL REQUIREMENTS COULD HURT BUSINSESS. A FEW ALSO TOLD US THEY ARE LICENSED, BONDED, INSPECTED, AND OFFER LOANS TO PEOPLE THAT ARE IN A BIND, AND HAVE NO WHERE ELSE TO GO. SOMETHING, MATHERN DISAGREES WITH. SHE SAYS THERE ARE OTHER OPTIONS THAT WON’T COST YOU TRIPLE DIGIT INTEREST RATES. “WE WILL GIVE SHORT TERM LOANS, AND IT’S NOT A HUNDRED DOLLAR FEE, AND WE WILL ALLOW THEM TO MAKE MONTHLY PAYMENTS, INSTEAD OF ALL OF IT COMING OUT OF THEIR NEXT PAYCHECK.” NICOLE JOHNSON, VALLEY NEWS LIVE. THERE ARE MORE THAN 50 PLACES THAT OFFER PAYDAY LOANS IN NORTH DAKOTA. IF YOU WANT TO KNOW MORE ABOUT THE PROPOSED RULES, WE HAVE A LINK ON OUR WEBSITE. JUST LOG ON TO VALLEY NEWS LIVE DOT COM AND CLICK ON THE HOT BUTTON.

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