You Can Bank On It
As tax day approaches, a big revenue source dries up for one of Kentucky’s largest banks, at least until next January or Congress or the Kentucky General Assembly shuts it down.
Lax Kentucky banking laws have allowed state chartered banks like Republic of Louisville, according to the Consumer Federation of America (CFA), to charge rates as high as 161% on tax refund anticipation loans.
Sen. Charles Schumer, a New York Democrat and member of the Senate Banking Committee, said in a statement "people all over the country are getting ripped off by these so-called refund loans, and it's time to stop them dead in their tracks." He called the loans "usurious."
This is not the first time Republic has violated defacto Federal Regulations manipulating loopholes in Kentucky’s banking laws. In a Feb. 17, 2006 letter to the bank, the Federal Deposit Insurance Corporation (FDIC) "cited inherent risks associated with payday lending activities and asked the bank to consider ending this line of business," according to a filing with the U.S. Securities and Exchange Commission.
This was prompted by a letter to the FDIC from over 80 national consumer groups that complained about Republic’s abusive practices in Pay day loans.
How much longer will our legislators continue to put the interests of the banking lobby over interests of citizens of the Commonwealth?
posted by Ralph Long @ 3:37 PM
6 comments
6 Comments:
To your final question there Ralph, had I been invited to the Lobbyist Thunder Party I would have asked John Cooper and Ballard Cassidy that very question. That is, if I could have pulled their heads from David William's ass.
I think anyone with their head on straight realizes that these payday lending schemes is just bad business. Last I checked no one is being grabbed off the street and forced to enter into this behavior. While I find the practice disgusting, if someone is willing to do business with these people, well, who's at fault then?
Whether or not Senator William's hemorrhoids can be brought to account for this, I'd much rather have them working toward the State's business rather than trying to convince people who they should do business with and how.
Hey Sloth, tell us again why we can't choose to make the stupid decision of walking into a casino without having to leave the state to do so?
Anon@1130:
People make that poor decision everyday during the Keeneland and Churchill Downs meets. They don't have to leave the state to shove their hard earned money up a horse's arse.
If your real question is why not have Casino gambling in the state, then I'd say let's go for it. Make a clearly defined amendment and put it to the people for the vote. That vote will fail and that will be the end of it.
My issue isn't with gambling or Casinos. I'm sure it would bring jobs to some areas that need them and would keep increase the taxes for the Commonwealth. My issue is what are we going to do with those taxes? The last great gambling panacea was to support Education...that is until the General Assembly decided otherwise. I suspect that even though THIS project will be listed to fund education efforts it, too, will end up in the general fund for a bridge in Louisville, or a Stadium in Lexington, or a parking lot in Bowling Green.
"That vote will fail and that will be the end of it." Not only is Sloth David Williams' alter ego apologist, he's also Karnac the Magnificent.
I have used payday loans in the past when I needed some last minute cash. It was a great help, especially since I needed the cash after bank hours. The fees was lower than I expected and I was very pleased with the service provided.
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