As 2008 comes to a close, there have been a number of recent articles about payday loans in the news. Here's a quick summary of several items:
- The Chicago Tribune ran an article discussing CashNet USA, one of the largest payday lenders in the U.S. The article discussed the explosive growth enjoyed by CashNet, and how they plan to expand over the next year. CashNet is an internet payday lender (and one of the lenders that NextDayCheck works with).
- The Associated Press reports about an effort by a large brick and mortar lender to change the small loan rules in New Hampshire. The article notes that New Hampshire's Banking Commissioner (Peter Hildreth) said Monday he is reviewing a request from South Carolina-based Advance America Cash Advance Centers Inc. to provide small loans as open-ended lines of credit. A state law that takes effect Thursday caps the interest rate on payday loans at 36 percent a year, which the industry has said will put it out of business. Hildreth said Advance America wants to loan money under another section of the banking law that covers small lenders. He said Advance America would charge between 365 percent and 456 percent in annual interest depending on whether the borrower allows automatic payment on the loan.
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